With inflation showing signs of softening and the economic outlook remaining steady, financial experts anticipate that the Reserve Bank of India (RBI) will announce another cut in the repo rate during its upcoming Monetary Policy Committee (MPC) meeting in early June.
The six-member MPC, comprising three RBI officials and three government nominees, convenes bimonthly to set key interest rates in line with inflation targets. Following two consecutive rate cuts earlier this year, experts believe a third reduction is likely—expected to be 25 basis points—which would further lower borrowing costs.
Industry stakeholders see this as a positive move, especially for the real estate sector. Pradeep Aggarwal, Chairman of Signature Global (India) Ltd., notes that a third cut would not only improve home affordability but also uplift overall economic sentiment and real estate activity. He believes the step could significantly boost demand from first-time homebuyers and investors alike.
Ashok Kapur, Chairman of Krishna Group and Krisumi Corporation, emphasizes that affordable housing loans—spurred by lower policy rates—can further accelerate demand in real estate and create a ripple effect in allied industries like cement, steel, and construction.
Raoul Kapoor, Co-CEO of Andromeda Sales and Distribution, adds that if the 25-bps cut materializes, it will bring the total reduction for 2025 to 75 basis points. Such a development would not only make borrowing cheaper but also expand loan eligibility for many, reinforcing consumer spending and broader investment, particularly in housing.
