siliconindia | | DECEMBER 20258In a move that underscores the Reserve Bank of India's commitment to sustaining economic momentum amid benign inflationary pressures, the Monetary Policy Committee (MPC) on December 5, 2025, unanimously decided to slash the repo rate by 25 basis points to 5.25 percent. This marks the fourth rate reduction in the calendar year, aggregating to a cumulative easing of 125 basis points since early 2025.The decision comes as headline inflation fell to a multi-decade low of 0.25 percent in October, well below the 4 percent target, alongside an upwardly revised GDP growth projection of 7.3 percent for FY 2025-26. The rate cut seeks to lower borrowing costs, boost credit, and stimulate investment and consumption, while banks face liquidity benefits, margin pressures, and long-term growth opportunities.Here Are Top 10 Voices on How RBI's Repo Cut is Shaping India's EconomyBittu Varghese, CFO, Table Space "A 25 bps repo rate counterbalances the low inflation rate and supports 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".Umesh Uttamchandani, Co-Founder and Chief Growth Manager, DevX"The RBI's pro-growth and pro-liquidity move to reduce the repo rate to 5.25 percent while maintaining a 'Neutral' stance is a strategic masterstroke that capitalizes on India's current 'Goldilocks' moment, characterized by robust 8.2percent GDP growth and record-low inflation. For the commercial real estate sector, this acts as a dual enabler. On the supply side, easier access to finance will directly translate into faster project deliveries, particularly accelerating our expansion into Tier-2 markets".Rakesh Reddy, Director, Aparna Constructions "The latest repo rate cut marks a standout moment for the Indian economy, where strong growth is aligning with soft inflation, thus creating an ideal macroeconomic environment. With the repo rate now at 5.25 percent, alongside revised SDF, MSF, and Bank Rate levels, we are entering a phase of healthier borrowing conditions and renewed consumer optimism. With cumulative repo rate cuts reaching 125 basis points this year alone, it is evident that monetary policy is decisively shifting toward easing. Coupled with the RBI's liquidity-support measures, these cuts will keep credit flowing smoothly across the economy".Sanjay Dutt, MD and CEO, Tata Realty and Infrastructure "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 EDITORIAL EXCLUSIVEHOW RBI'S CALCULATED REPO MOVE IS QUIETLY REWRITING INDIA'S CREDIT PLAYBOOK· Slashed 25 bps to 5.25% to boost credit, consumption, and investment.· Lower borrowing costs improve affordability and accelerate project financing.· Banks get liquidity, sets stage for long-term credit growth and market confidence.By M R Yuvatha, Senior Correspondent, siliconindia
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