Reserve Bank of India (RBI) slashed repo rate by 25 bps and making room for further rate cuts in the future. Through this, borrowing is set to become cheaper thereby driving demand for vehicles and homes. But what are our business leaders saying about this?
Here are the edited excerpts of some of them.
Aniruddha Mehta, Chairman & Managing Director, Umiya Buildcon Ltd.
The Reserve Bank of India’s decision to reduce the repo rate by 25 basis points to 5.25% increases the affordability of homes for a variety of buyers. Furthermore, with this decrease, lenders will pass on the benefit of lower interest rates, giving buyers greater access to purchase power and promoting quick decision-making between both the mid-income and luxury home segments.
In addition, this cut gives developers improved access to capital and reduced financing costs, allowing them to more easily plan their cash flows, and provides them with the capital needed to launch new projects. We anticipate as demand continues to improve, the speed of real estate sales will continue to increase, confidence in the market will grow, and the overall growth outlook of the real estate sector will be improved as we move towards 2026.
Anitha Rangan, Chief Economist, RBL Bank
Announcing a rate cut of 25 bp and maintaining a neutral stance along with 1 lac crore OMO, RBI is perhaps once again front-loading its rate cut. With inflation revised downwards and growth outlook revised upwards, RBI indicates that inflation is giving headroom to support growth. Announcing OMO perhaps suggests that RBI is cognizant of G-sec yields. In addition, a 3-year FX swap suggests that RBI is aware of the FX risks. They have done swaps in the past, and there is a possibility of more support if required.
Nevertheless, a neutral stance suggests that RBI is unlikely to acknowledge rate cuts once again in the near future, but the support from OMOs and FX could continue. Overall dovish policy for now, with RBI watching all parameters. While the repo cut does put pressure on the currency front, FX swap suggest that RBI is cognizant of currency pressures.
Anurag Mittal, Head of Fixed Income at UTI AMC
The RBI has clearly delivered a coordinated policy push by combining a 25 bps rate cut with Rs. 1 trillion of OMOs and $5 billion FX buy-sell swap. The message is unambiguously towards easing of financial conditions and supporting the next leg of growth. An easing transmission cycle and softer liquidity conditions create a favourable backdrop for short- to medium-duration strategies where term premium compression is likely to be most pronounced. Investors with more than a 1-year investment horizon can consider short-duration and corporate bond strategies.
Murthy Nagarajan, Head-Fixed Income, Tata Asset Management
As per RBI MPC members, the benign inflation outlook on both headline and core continues to provide policy space to support the growth momentum. MPC reduced the policy rates by 25 basis points and continued with its neutral stance. The language seems to indicate one more rate cut in the coming months, as current-year CPI inflation has been revised lower to 2 percent from 2.6 percent, and growth for next year and GDP growth have been revised upwards to 7.3 percent from 6.8 percent projected. CPI inflation is projected at 3.9 and 4 percent, and GDP growth is projected at 6.7 and 6.8 for Q1 and Q2 of next year, 2026-27. As per RBI Governor, core inflation pressure is still low given 50 basis points of increase in core inflation are contributed by metal prices.
RBI Governor has announced open market operations of Rs 1 lakh crores with Rs 50000 on December 11 and another Rs 50000 Crores on December 18. Forex buy Sell swap of 5 billion USD is to be done on December 16. A total of Rs 145000 crores of liquidity is expected to be injected in the next 15 days. This is for the month of December only, and further measures are expected in the fourth quarter of financial year. This should take the ten-year yields to 6.25 to 6.30 levels in the coming months from the 6.45 to 6.50 prevailing now.
Sanjay Dutt, MD and CEO, Tata Realty and Infrastructure Ltd.
The RBI’s decision to reduce the repo rate by 25 basis points to 5.25% with a ‘neutral’ stance is a decisive and welcome move that perfectly aligns with the current macroeconomic sweet spot. With October’s CPI inflation cooling to a historic low of 0.25%, the central bank had the necessary headroom to prioritize growth without compromising stability.
For the real estate sector, this is a significant sentiment booster as we head into the final quarter of the financial year. This reduction will likely push home loan interest rates further below the 8% mark, effectively increasing affordability and borrowing power for fence-sitters in the mid-income and premium segments. Coming on the back of the festive season and the excitement of new year, this rate cut acts as a catalyst that will convert enquiries into closures, helping sustain the sales momentum we have built over the last two quarters.
Vijay Wadhwa, Chairman, The Wadhwa Group
The reduction in repo rate, though measured, is a timely step that strengthens momentum in the housing sector. A decrease of 25 basis points can meaningfully influence sentiment, especially for first-time and end-use buyers, and may stimulate incremental investment appetite.
The RBI’s decision to bring the repo rate down to 5.25%, alongside raising the GDP growth outlook to 7.3%, reinforces confidence in the broader economic trajectory and is expected to ease EMIs for millions of households. With inflation comfortably moderated and economic growth well supported, the easing of borrowing costs is likely to encourage families to advance their home-buying decisions.
In pivotal markets like Mumbai, along with fast-growing destinations such as Panvel and Karjat, this welcoming policy move is expected to accelerate demand for well-planned, future-ready residential communities. Real estate is a long-term asset class and benefits most from steady, predictable policy movement rather than abrupt shifts. If the direction holds, we anticipate further improvement in affordability, deeper institutional confidence, and continued consolidation of developers who operate transparently and at scale.
Abhijeet Maheshwari, CEO, Piramal Realty
The RBI’s 25-basis-point rate cut provides welcome support to overall housing affordability and home buying confidence, especially as inflation remains at comfortable levels. With the economy showing steady momentum, this move is expected to ease borrowing costs and strengthen purchase intent in the premium and luxury segment, where home buyers are increasingly prioritising long-term value and asset stability. For key markets like Mumbai, we anticipate a healthy rise in enquiries and faster decision-making as consumers respond to more favorable financing conditions.
Bittu Varghese, CFO at Table Space
A 25 bps repo rate counterbalances the low inflation rate and supports an increase in domestic consumption by making debt more attractive. Within our industry, this can lead to higher demand from enterprises and GCCs; cheaper capital directly translates into greater headroom to scale hybrid operations in high-quality Grade A environments. The flex segment, already a key contributor to office absorption, stands to gain as zero-capex, tech-enabled models become even more attractive amid resilient metro demand and steady consumption. This is more than a marginal rate adjustment; it has the potential to reshape occupier behaviour, accelerate credit deployment, and reinforce flexible, serviced workspaces as a central pillar of the next phase of India’s office market.
Rohan Khatau, Director, CCI Projects Pvt. Ltd.
The steady increase in demand for luxury homes clearly indicates the buyer’s preference for the premium category, as a sizeable portion of sales is concentrated in the ₹1 crore-and-above price category. The 25 bps cut in the repo rate by the MPC to 5.25% comes at a very opportune time and will add to buyer confidence—especially for the luxury and upper-mid categories. This sentiment is also reinforced by India’s robust economic growth, which reached a six-quarter high of 8.2% in Q2. Integrated townships are attracting greater interest as homebuyers look increasingly toward self-sufficient, amenity-forward communities, assuring convenience, lifestyle upgrades, and long-term value. In Mumbai, this trend is growing exponentially, and with easier lending norms, this momentum in the premium and township-led housing market of the city is sure to gain further steam.
Amit Somani, Deputy Head – Fixed Income, Tata Asset Management
RBI delivered a 25bps policy rate cut and kept the stance as Neutral. One member, Prof. Ram Singh, was in favor of changing the monetary policy stance from Neutral to Accommodative. FY26 CPI Inflation outlook has been further revised down and is now projected to be at 2.0% from 2.6% in earlier policy. GDP Forecast for FY26 has been revised upwards to 7.3% from 6.8% earlier.
CPI Inflation has been coming lower than the Market as well as RBI’s estimates throughout the year and is now estimated to reach the lower bound of target range for this fiscal. Current downward revision is attributable to higher Kharif production, healthy Rabi sowing, adequate reservoir levels creating favorable prospects for food prices. GDP growth outlook, on the other hand, has been further revised higher on account of agricultural prospects, continued impact of GST rationalization, benign Inflation and congenial monetary and financial conditions.
With inflation outlook firmly under control and Fiscal consolidation continuing, we believe Monetary policy will continue to remain in Growth supportive mode over foreseeable future. In this regard, RBI announced immediate measures to improve Liquidity conditions while also supporting liquidity on an ongoing basis. This includes USD 5 BN Buy/Sell Swap for 3 years and Rs.1,00,000 crore of OMOs in December month itself. We expect such measures will continue in the seasonally busy last quarter of the year.
We feel Growth supportive Monetary Policy, to have favorable ground for short-term as well as long-term yields. RBI assured keeping banking system liquidity in sufficiently positive zone. Further Liquidity operations will be conducted in a way that will keep overnight rate closer to the policy rate. We expect 10-yr G-sec to trade in 6.30% – 6.50% range and drift lower as OMO measure unfolds. Short-term yields are likely to come down on account of a rate cut; however, advance tax outflows should keep 1-year CDs in 6.40%-6.50% range.
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