New Delhi: The Reserve Bank of India (RBI) on Tuesday decided to maintain the repo rate at 5.50%, keeping policy rates steady amid global economic uncertainties. The decision, aimed at ensuring financial stability, is expected to support consumer confidence and provide a boost to sectors such as real estate and housing finance.
Reactions shared with Ziraat Times suggest industry leaders have welcomed the RBI’s stance, highlighting its positive implications for both homebuyers and developers.
Pradeep Aggarwal, Founder & Chairman of Signature Global (India) Ltd., said the decision would “sustain positive momentum across sectors, including real estate, by supporting liquidity, boosting consumer confidence, and encouraging investment activity.”
Jash Panchamia, Executive Director at Jaypee Infratech Ltd., said the unchanged repo rate reflected a “steady and supportive approach” with inflation under control. “The current stance provides stability to the housing market, allowing homebuyers and long-term investors to plan confidently,” he noted, adding that stable rates also help developers in planning and executing projects.
Shrinivas Rao, FRICS, CEO, Vestian said, “RBI has kept the repo rate unchanged at 5.50% after three consecutive reductions earlier this year. The central bank is closely monitoring global economic dynamics while banking on the ongoing festive season to stimulate GDP growth. This stable monetary stance is expected to bolster confidence in the real estate sector, fuel demand, and attract fresh investments. With headline inflation remaining within RBI’s comfort zone, there is a likelihood of a rate cut in the near future—a move that would further accelerate momentum in both residential and commercial real estate, supporting long-term sectoral growth.”
Ashok Kapur, Chairman of Krishna Group and Krisumi Corporation, described the RBI’s move as “cautious and prudent,” striking a balance between growth and inflation management. He acknowledged that while a rate cut could have further spurred demand, the sector continues to benefit from earlier reductions and lending rate adjustments by commercial banks.
Saya Group’s Managing Director, Vikas Bhasin, said the RBI’s decision was in line with expectations. “This year, we have already witnessed significant support from the government—policy rate cuts, tax-saving measures in Budget 2025, and rationalization of GST—all of which have boosted household savings and strengthened homebuyer confidence,” he observed.
Raoul Kapoor, Co-CEO of Andromeda Sales and Distribution, emphasized that uncertainties in global trade and geopolitics limited the scope for further rate cuts. He explained the impact of lower rates on borrowers: “A 100-bps cut reduces the EMI on a ₹1 lakh loan with a 20-year tenure by approximately ₹65 per lakh, translating into significant savings for larger loans. Combined with tax savings and lower GST, household purchasing power has improved considerably.”
With the festive season approaching, industry leaders anticipate a surge in borrowing across categories—from consumer loans to housing finance—driven by improved affordability, government support, and stronger consumer sentiment.
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