RBI MPC Meeting Highlights: Markets Cheer Repo Rate Cut, Sensex Closes About 1 Per Cent Higher, Nifty Over 25K
RBI MPC June 2025 Highlights: Follow this space for all the latest news and updates on the RBI MPC meet, chaired by Governor Sanjay Malhotra, which will reveal its final decision on key rates today
Background
RBI MPC June 2025 Highlights: All eyes are on the Reserve Bank of India (RBI) today as Governor Sanjay Malhotra is set to announce the central bank’s first monetary policy decision for the second time this financial year. The three-day meeting of the Monetary Policy Committee (MPC), which commenced on Wednesday, concludes this morning. Widespread speculation suggests the committee may opt for a 25 basis point cut in the repo rate.
The final decision is expected to be unveiled by Governor Malhotra in a televised address at 10 AM. In its last policy review in April, the MPC lowered the repo rate by 25 basis points to 6.00 per cent, marking the second rate move after first rate cut in February in nearly three years.
Expectations From The MPC
Vimal Nadar, National Director and Head of Research, Colliers India noted, “We expect the RBI to continue its growth-supportive stance and further rationalize the repo rate. While inflation being in control provides the elbowroom for continuation of an accommodative policy; impact of external trade volatilities and atypical monsoon patterns are likely to have a bearing on future growth prospects. A third consecutive reduction in benchmark lending rates can spur homebuyers’ sentiment and resultantly improve housing demand particularly in affordable and middle-income segments. For developers too, the rate cut could aid in gradual inventory clearance and offer financial relief by lowering of borrowing costs.”
Shrinivas Rao, FRICS, CEO, Vestian, said, "Reserve Bank of India (RBI) is expected to lower the repo rate by 25 basis points for the third consecutive time to boost consumption as inflation continues to remain below the 4 per cent target range. It is also anticipated to maintain an ‘accommodative’ monetary policy stance to support growth amid global uncertainties triggered by US tariffs and geopolitical frictions.”
Rao further added, “This rate cut is expected to bring relief to both homebuyers and developers, as most commercial banks are likely to follow suit and reduce interest rates. While homebuyers will be able to secure home loans at lower rates, developers will benefit from low borrowing costs, potentially boosting affordability and investments in the real estate sector."
Major Commercial Banks Are Likely To Pass On This Benefit To Homebuyers: Expert
Shrinivas Rao, FRICS, CEO, Vestian, said, “As expected, RBI lowered the repo rate amid global growth slowdown to boost domestic consumption. This is the third rate cut since the start of the year, as headline inflation has softened and is below the target range of 4%. Since February 2025, the RBI has cut the repo rate by 100 basis points (currently standing at 5.5 per cent) with no headroom left for further rate cuts. Hence, the central bank has changed its stance from ‘Accommodative’ to ‘Neutral’ to carefully observe the global scenario and act accordingly. Major commercial banks are expected to pass on this benefit to homebuyers and developers by lowering interest rates, stimulating real estate demand and investments.”
This Move Is The Right Dosage For Real Estate Sector: Expert
Piyush Bothra, Co-Founder and CFO, Square Yards, noted, “The 50-basis point rate cut, though bold but expected, reflects the central bank’s acknowledgement of a shifting macroeconomic landscape. With the full-year FY25 GDP growth projected at only 6.5 per cent, the slowest since the pandemic, there is clear evidence of softening momentum. With inflation at a manageable 3 per cent, the RBI had enough headroom to ease policy without triggering price instability. For the real estate sector, which has already been witnessing mellowed growth, this move is the right dosage which was required to unleash the animal spirits. A 50-bps reduction will translate into meaningful EMI savings, improving affordability for homebuyers. It will also give developers greater confidence to move ahead with new launches, especially in the low-to-mid segments.”
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