In an assertive move to stimulate economic momentum, the Reserve Bank of India has cut the repo rate for the third consecutive time, bringing it down to 5.5%. This aggressive rate-cutting streak has sparked intense debate across markets, policy circles, and industry boardrooms. Is the RBI signaling growing concerns about slowing growth, or is it laying the groundwork for a more sustained recovery? As inflation remains within target and global headwinds persist, the central bank’s stance offers clues about its evolving priorities. This feature explores what these back-to-back rate cuts truly reveal about the RBI’s outlook — and what it could mean for businesses, borrowers, and the broader economy.
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Mr. Ashish Kukreja, CEO & Founder, Homesfy.in and mymagnet.io said, the RBI’s decision to cut the policy repo rate by 50 basis points (bps) to 5.50% is driven by easing inflation and a gradual recovery in economic activity. This marks the third consecutive repo rate cut since February 2025, with the rate falling by a total of 100 bps in the first half of the year.
With GDP growth for the financial year 2026 projected at 6.5% and inflation expected to remain around 4%, the move reflects cautious optimism amid global uncertainties. On the external front, robust services exports and strong remittance inflows have helped offset the merchandise trade deficit, keeping the current account deficit sustainable. This proactive step aims to enhance liquidity, support investments, and make borrowing, especially for homebuyers, more affordable, though the benefit depends on timely transmission by banks.
Mr. Lincoln Bennet Rodrigues, Chairman & Founder, Bennet & Bernard highlighted, a rate cut, while widely anticipated in some quarters, comes as a welcome move for the real estate sector. Lower borrowing costs will positively influence affordability and purchasing decisions, particularly in the budget and mid-income segments. While luxury homebuyers are typically not driven by EMIs or interest rates, a softening monetary policy signals broader economic confidence. This sentiment plays a key role in high-ticket real estate investments, especially in markets like Goa, where lifestyle migration and legacy asset creation are driving demand. We expect renewed interest from NRIs, long-term investors, and domestic HNIs who are looking to diversify into tangible, inflation-resilient assets. Overall, a rate cut acts as a confidence marker, even if its direct impact on the luxury segment is limited.
Mr. Kaushik Chatterjee, Founder, lendingplate said, The RBI’s decisive move to cut the repo rate by 50 basis points to 5.5% and reduce the Cash Reserve Ratio (CRR) by 100 basis points is a significant step towards enhancing liquidity in the financial system. The CRR reduction alone is expected to inject approximately ₹2.5 lakh crore into the banking sector, providing institutions with greater capacity to extend credit. This policy action is poised to stimulate lending activities, particularly benefiting sectors reliant on accessible financing.
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Mr. Vikkas Goyal, Founder, Rupee112 said, The central bank’s third consecutive rate cut in 2025, totaling a 100 basis point reduction, coupled with a shift in policy stance from ‘accommodative’ to ‘neutral’, reflects a balanced approach to sustaining economic momentum. With the GDP growth forecast maintained at 6.5% and inflation expectations revised downward to 3.7% for FY26, the current environment presents a favorable landscape for expanding lending portfolios and supporting the credit needs of diverse borrower segments.
Mr. Anand Pandit, Chairman and Managing Director, Sri Lotus Developers and Realty Limited highlighted, RBI’s move to slash the repo rate by 50 bps to 5.5% is a clear signal of renewed vigour in India’s financial landscape, particularly encouraging for the ultra-luxury segment in Mumbai. For our clients, which include UHNIs, global investors, and celebrities, this brings tangible benefits in financing and portfolio allocation. While such buyers invest with long-term vision, smoother borrowing conditions and enhanced liquidity provide greater strategic flexibility and confidence.
Mr. Parthh K Mehta, CMD, Paradigm Realty said, the announcement of the third consecutive reduction in the repo rate will invigorate the real estate sector. We expect home loans to become more affordable helping first-time buyers and investors to consider premium developments. At Paradigm Realty, we see this reduction in lending rates by RBI as an opportunity to lower borrowing costs, boost consumer sentiment and offering timely impetus to housing demand across segments, including attracting homebuyers to luxury and premium housing thus meeting their aspirations of owning landmark residences.
Mr. Bhavesh Shah, Joint Managing Director, Today Group said, this marks the third consecutive repo rate cut, and it’s a welcome move for the real estate sector. With a cumulative reduction of 100 basis points since February, the repo rate now stands at 5.50% — providing a much-needed boost to both homebuyers and developers.
Lower lending rates pave the way for more affordable home loans, bringing dream homes within closer reach for first-time buyers and seasoned investors alike. As consumer confidence continues to surge, developers are equally energised — setting the stage for timely deliveries and the launch of more premium residential offerings. This is the momentum the industry needed, and we’re optimistic about what lies ahead.
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Dr. Nayan A. Shah, Chairman and Managing Director, Mayfair Housing said, today’s reduction in the repo rate by the MPC will inject fresh momentum into the housing market. Further, the cut in CRR by 100 basis points will increase bank liquidity, and thereby increase liquidity in the broader markets. With today’s development, buying a home will become more affordable with lower home loan interest rates. It is a positive sign that could lead to increased demand across segments and stimulate overall real estate activity. Improved financing conditions make new launches and upgrades more viable and set the stage for renewed growth in the city’s residential real estate sector. All-in-all this decision will boost buyer sentiment and contribute further to sustained growth in the housing market.
Mr. Anuj Goradia, Director, Dosti Realty said, in a dynamic real estate market like Mumbai the MPC’s rate cut signals a positive outlook. This will help support redevelopment initiatives that are very crucial for the city’s growth. Lower interest rates will make luxury and premium residences more accessible. Such policy moves help act a stimulus and foster confidence among homebuyers and investors. We believe this rate cut will help accelerate the transformation of Mumbai’s skyline and enable more families to upgrade to thoughtfully designed homes that reflect their aspirations.
Mr. Chintan Sheth, Chairman and Managing Director, Sheth Realty highlighted, for the real estate sector, a repo rate cut will not only enhance affordability for luxury homebuyers but also provide much-needed liquidity to the developers especially those having projects in the redevelopment space. We expect this to improve demand in the premium housing segment, allowing buyers to upgrade to high-end residences and adding support to the timely execution of several large-scale redevelopment projects. This will further strengthen buyer confidence and accelerate growth in the luxury housing market.
Mr. Anmol D Shroff, Founder and CEO, Graanth Realty said, for the real estate sector, a repo rate cut will not only enhance affordability for luxury homebuyers but also provide much-needed liquidity to the developers especially those having projects in the redevelopment space. We expect this to improve demand in the premium housing segment, allowing buyers to upgrade to high-end residences and adding support to the timely execution of several large-scale redevelopment projects. This will further strengthen buyer confidence and accelerate growth in the luxury housing market.
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Mr. Hiren Chheda, Founder and Managing Director, Ekatva Group highlighted, the recent repo rate cut by 50 basis points to 5.5 per cent means that the rate is now at its lowest in nearly three years. This will encourage commercial banks to lower lending rates and tenures across the entire lending ecosystem. We anticipate that more small-to-medium businesses will consider investing in office spaces as an asset, a trend that has been on the rise in the post-pandemic years. On a macro level, the move reflects that inflation is under control and a marked focus to bolster the economy from within, in the face of global uncertainties including trade and tariff tensions. The repo rate cut will offer reassurance to business owners, encouraging more investments in commercial real estate, especially in well-located and affordable office spaces in key business hubs
Mr. Sanjay Daga, CEO and Managing Director, Anex Advisory said, as I had already predicted, the MPC has favoured a 50-bps rate cut. This is a prudent response to the current environment of controlled inflation and improved economic growth. This is a measured move that will bring in enhanced credit flow and thus create a favourable backdrop for sustaining momentum across sectors. Real estate will see great benefit as home loan borrowers on floating rates face no immediate urgency to prepay and the reduction in interest rates will eventually lower EMIs over time. This should ease monthly financial commitments. We expect the cost of borrowing for developers to decrease and thereby increase their margins, and they may pass on the benefits to homebuyers in terms of better pricing. The rate cut is balanced approach toward supporting borrowers by improving affordability but also help maintain stability for lenders, fostering a healthier credit ecosystem overall.
Mr. Jash Panchamia, Promoter, Suraksha Smart City said, this is a strategic policy move through which we expect to ease borrowing costs and enhance credit flow to the housing sector. At Suraksha Smart City, we expect the 50-basis point reduction in the repo rate a positive impact on buyer sentiment. This will reflected under initiatives like PMAY in particularly, where lower interest rates directly translate into greater accessibility and accelerated uptake. We see this as a development that aligns with our commitment to delivering value-driven housing at scale.” With several scheduled commercial banks already offering home loans below 8 percent, today’s decision may lead to a broader transmission of lower rates across the lending ecosystem. This will not only ease the financial burden on borrowers but also enhance affordability across housing segments, offering significant relief to homebuyers and providing a timely push for those planning property purchases.
Mrs. Priyanka Madnani, Founder & CEO at Terex Ventures said, the 50 bps repo rate cut to 5.5% by RBI is a decisive tailwind for India’s capital ecosystem. Lower borrowing costs enhance liquidity and compress risk premiums, making capital more accessible across the spectrum—from working capital lines to venture debt.
For early-stage startups, it creates a more founder-friendly fundraising environment where capital becomes marginally cheaper, allowing longer runways without aggressive dilution. For growth-stage companies, the move improves leverage ratios, supports structured funding instruments, and makes scale-up capital more strategic than reactive.
From a cross-border lens, it strengthens India’s position as a high-growth, low-cost destination—especially attractive for UAE-based LPs seeking diversification and long-term alpha.
India isn’t just cheaper to invest in—it’s smarter to bet on.
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