New Delhi: The Reserve Bank of India has reduced the repo rate by 25 basis points to 5.25 per cent, signalling a calibrated effort to support economic activity and improve loan affordability. Alongside maintaining a neutral policy stance, the RBI announced additional liquidity measures, including the purchase of government securities worth ₹1,00,000 crore and a 3-year USD/INR Buy–Sell swap of USD 5 billion. These interventions aim to strengthen durable liquidity and ensure smooth monetary flow across the financial system.

Industry welcomes move as borrowing costs ease

Industry experts, particularly from the banking and real estate sectors, view the repo rate reduction as timely and growth-supportive. The cut is expected to ease borrowing costs for consumers and businesses, enabling better fund flow and aiding capital expenditure. Real estate players anticipate increased homebuyer interest, particularly in the affordable and mid-income categories, where purchasing decisions are highly sensitive to interest rate movements.

Sector leaders highlight positive impact on housing

Mr Jash Panchamia, Executive Director, Jaypee Infratech Limited, noted that the decision aligns well with stable inflation and economic momentum. He emphasised that the move will boost consumption and help revive interest in affordable and mid-segment housing by making home loan rates more attractive.

Mr Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd., welcomed the policy update, stating that the rate cut will reinforce economic growth, strengthen demand and support ongoing investment activity. He added that improved market sentiment and affordability will sustain housing momentum across key regions.

Enhanced affordability expected across key buyer segments

Commenting on the development, Mr Vikas Bhasin, Managing Director, Saya Group, said the reduction provides a clear signal of easing financial conditions. He highlighted that lower EMIs and improved liquidity will particularly benefit mid-income and first-time homebuyers.

Mr Ashok Kapur, Chairman, Krishna Group and Krisumi Corporation, noted that the luxury housing segment—which has shown strong end-user demand—will gain further traction as softer lending rates enhance affordability and long-term investment appeal.

Mr Sumit Agarwal, Director, Ashtech Group, added that home loan rates, already trending below 7.5%, may now move towards the 7%–7.25% range, creating an attractive window for prospective buyers. He noted that reduced EMI pressure will help restore buying confidence and stimulate fresh demand.