siliconindia | | DECEMBER 20259Sanjay Dutt, MD & CEO, Tata Realty and Infrastructure Ltd."The RBI's decision to reduce the repo rate by 25 basis points to 5.25 percent 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 percent, 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 percent mark, effectively increasing affordability and borrowing power for fence-sitters in the mid-income and premium segments".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 percent, alongside raising the GDP growth outlook to 7.3 percent, reinforces confidence in the broader economic trajectory and is expected to ease EMIs for millions of households".Ajay Kumar Srivastava, Managing Director & CEO, Indian Overseas Bank"We welcome the RBI's decision to reduce the repo rate by 25 basis points to 5.25 percent while maintaining a neutral stance. This policy supports growth while keeping inflation at or below the 4 percent target, with real GDP expected at 7.3 percent for 2025-26 (Q3 at 7.0 percent; Q4 at 6.5 percent, Q1 2026-27 at 6.7 percent and Q2 at 6.8 percent). The rate cut is expected to ease borrowing costs, spur demand in housing and real estate, support MSMEs and sustain personal and auto loan growth.On the financial sector side, bank credit growth remains healthy at 11 percent and overall credit from bank and non-bank sources has risen by 13.1 percent. The RBI's Rs 1 lakh crore OMO purchases along with the 3-year USD/INR buy-sell swap will support liquidity and monetary transmission. These measures will encourage domestic investment and deepen financial access".Adhil Shetty, CEO & Co-Founder, BankBazaar"With a 25 basis point cut, policy is now more clearly aligned towards supporting growth. Home loan borrowers will see modest but meaningful relief as lending rates adjust. The cumulative 125 basis point reduction this year has already eased EMIs, and for a 50 lakh loan over 20 years the fall in rates can reduce lifetime interest outgo by about 9 lakh. Existing borrowers can enhance savings by holding EMIs steady and shortening tenure, which helps bring long-term liabilities under better control."Ashish Narain Agarwal, Founder & MD, PropertyPistol"The move to cut the repo rate to 5.25 percent is a positive step for homebuyers, especially in pricier metros like Mumbai, where affordability is the primary friction. A 25-bps reduction can lower the EMI on a 50-lakh home loan by roughly 700-800 over 20 years, providing the psychological nudge many salaried buyers need. However, the strategic value of this cut depends on how borrowers utilise it".Vishal Raheja, Founder & MD, InvestoXpert Advisors Pvt. Ltd."The RBI's rate cut is set to reinforce confidence across both end-buyer and investor segments, particularly in lifestyle-led and high-demand markets such as Goa, Bengaluru and Delhi-NCR. The financial impact, though subtle in percentage terms, is meaningful in real numbers, a 25-bps reduction reduces EMI on a 60-lakh home loan by approximately 900-1,200 per month, saving over 10,000 annually assuming full transmission. This breathing room meaningfully improves the feasibility of second homes, investment apartments and plotted developments, especially in amenity-rich corridors".Saket Gaurav, CMD, Elista"For the consumer durables sector, this rate cut to 5.25 percent is a crucial enabler. It will lift consumer sentiment and make it easier for manufacturers to fund expansion. Combined with the positive impact of the GST cut on trade, this significantly improves liquidity. The result is a stronger, more competitive Indian durables sector, poised for faster growth in domestic sales and exports".Summing It Up!In short, the 25 bps cut is the opening shot of a decade-long war for credit market share that will separate the next generation of winners from the legacy pack.The RBI has handed banking and financial stocks the rarest of gifts, a multi-year growth runway with inflation handcuffed, liquidity abundant, and asset quality pristine. Short-term margin noise will dominate headlines for two quarters, but the structural re-rating has only just begun. siliconindia | | DECEMBER 20259
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