Repo Rate cut good news

At a time of global economic uncertainty, the RBI has delivered a decisive signal last week with a 50 basis point cut in the repo rate, bringing it down to 5.5%.

This marks the third consecutive reduction, underscoring the RBI’s commitment to stimulate domestic demand, ease credit conditions, and propel investment cycles across key sectors.

Among the immediate beneficiaries of this policy shift is the real estate sector.

With consumer sentiment already on an upward curve, developers believe the lowered borrowing cost will catalyse housing demand, improve affordability for first-time buyers, and inject fresh liquidity into project development.

Deepak Kapoor, Director, Gulshan Group, says, “The decision to reduce the repo rate by 50 bps or 0.5% takes the total decrease in the repo rate by 1% in a short span of 6 months. The move also signals the central bank’s confidence in the growing resilience of the country’s economy which is increasingly exhibiting signs of certainty in the dynamically evolving global economic order. For the real estate sector, it will translate into an increase in new homeownership numbers.”

Business