RBI Cuts Repo Rate to 5.50% and CRR to 3% to Boost Economic Momentum and Housing Sector
Mumbai, June 6, 2025 – In a proactive move to support economic growth, the Reserve Bank of India’s Monetary Policy Committee (MPC) has announced a 50 basis point reduction in the repo rate, lowering it to 5.50%, along with a 100 basis point cut in the Cash Reserve Ratio (CRR) to 3%. This is the third rate cut in 2025, bringing the total reduction for the year to 100 basis points.
RBI Governor Sanjay Malhotra emphasized that the decision was based on stable inflation conditions and the need to cushion the Indian economy against ongoing global uncertainties. The central bank aims to stimulate credit growth and improve liquidity within the banking system, making loans—particularly home loans—more accessible and affordable.
The move has been welcomed by leaders in the real estate sector:
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Pradeep Aggarwal, Chairman, Signature Global, called the dual rate cuts a “major relief for homebuyers” and a timely step toward sustaining growth.
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Ashok Kapur, Chairman, Krishna Group, said this will ease borrowing costs and inject much-needed liquidity.
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Aman Sarin, CEO, Anant Raj Ltd, highlighted the cumulative impact of three cuts this year as a “strong push for economic revival.”
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Raoul Kapoor, Co-CEO, Andromeda Sales, noted the benefits to retail borrowers, especially those with high-value loans.
The real estate and housing markets are expected to see a surge in demand, especially in the mid-income and premium segments, as financing becomes more attractive and accessible.
