RBI repo cut: Industry reactions
The Hindu
RBI cuts repo rate by 50 bps to 5.5%, industry reacts positively, expecting boost in growth and credit demand.
The Monetary Policy Committee (MPC) under the chairmanship of Sanjay Malhotra, Governor, Reserve Bank of India on Friday (June 6, 2025) voted to reduce the policy repo rate by 50 basis points (bps) to 5.50% with immediate effect.
Consequently, the standing deposit facility (SDF) rate under the liquidity adjustment facility (LAF) shall stand adjusted to 5.25% and the marginal standing facility (MSF) rate and the Bank Rate to 5.75%.
Here we give the reactions from industry circles
“The Reserve Bank of India’s decision to reduce the repo rate by 50 basis points to 5.5% underscores a clear commitment to supporting growth,” said Yashish Dahiya, Chairman & Group CEO of PB Fintech.
“Coupled with the shift to a neutral stance, it signals a more balanced and measured approach going forward. This move will ease borrowing costs and enhance liquidity, benefiting MSMEs and retail loan borrowers. Overall, we believe this step will positively influence India’s economic momentum amid global headwinds.”
50 bps rate cut to boost real estate, broader economy:
Shishir Baijal, Chairman and Managing Director, Knight Frank India, commenting on the announcement made by the RBI’s Monetary Policy Committee, said: The RBI’s 50 bps rate cut marks a strong and proactive stance aimed at lifting the low and mid value housing segments. Over the last few years, the strong housing market momentum was increasingly concentrating in the premium end even as there were signals of weakening the lower segments. With this cumulative 100 basis point cut in the policy interest rate we expect rekindling of the lower segments as affordability will witness a meaningful improvement for such homebuyers. We hope that the developer community too renews its focus in a big way to give longer legs to this housing market upcycle which is in its 5th year. Liquidity conditions remain balanced and conducive to supporting this monetary stance and we hope to see a greater transmission of this rate cycle.
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