The Reserve Bank of India (RBI) has maintained the repo rate at 6.5% for the 11th consecutive time, signalling a stable monetary policy to balance inflation control and economic growth. Announced during the 5th bi-monthly meeting for FY25, the decision also saw the Cash Reserve Ratio (CRR) reduced to 4.0%, injecting ₹1.16 lakh crore into the banking system to boost liquidity.
In its economic outlook, the RBI adjusted GDP growth projections for FY25 from 7.2% to 6.6%, while inflation expectations rose marginally to 4.8%. These recalibrations highlight the central bank’s cautious optimism amidst ongoing economic challenges.
The real estate sector has reacted positively, with leaders such as Prashant Sharma, President of NAREDCO Maharashtra, welcoming the stability offered by unchanged repo rates. He emphasised that this consistency would support buyer confidence in affordable and mid-segment housing markets. Similarly, CREDAI MCHI Thane President Jitendra Mehta highlighted the attractiveness of home loans and noted that enhanced liquidity from the reduced CRR would further benefit the sector.
Industry experts, including Agami Realty CEO Prashant Khandelwal, and Nandivardhan Group Co-Founder Anil Mutha, called for additional government measures such as tax benefits and faster project approvals to sustain momentum. The stable borrowing costs are expected to drive growth across residential and commercial real estate markets, while infrastructure development remains a critical focus area for long-term progress.
