New Delhi, 3 June (IANS). Industry experts said on Tuesday that the impact of interest rate cuts in the Monetary Policy Committee (MPC) meeting of the Reserve Bank of India (RBI) is necessary to maintain low borrowing costs, to maintain the demand for residential real estate. Especially in the affordable housing segment, which is sensitive to fluctuations in interest rates.
In view of the current benign inflation environment and 6.5 percent GDP increase in FY 2025, the Reserve Bank may cut the 25-BPS repo rate on this Friday (June 6).
Shishir Baijal, chairman and managing director of Knight Frank India, said, “Improvement in liquidity with a surplus of Rs 3.6 lakh crore strengthens interest rate cuts, which increases the effectiveness of monetary transmission. In addition, the gentle of the G-Sek yield shows RBI’s printing and leaking markets in the management management and reflects the beliefs Strengthens justification. “
With the estimated rate cut, this cycle will have a cumulative reduction in policy rate will be 75 basis points.
However, now attention should be focused on the speed and comprehensiveness of the transmission.
Baijal further said, “Some commercial banks have started reducing their MCLR and base rates, adjustments have been modest. With the status of liquidity to be stable, now it is more scope for commercial banks to expedite the borrowers to expedite the benefits of policy relaxation.
The central bank is expected to cut the repo rate (BPS) in the repo rate in FY 2026 after a cut of 50 basis points till April this year.
According to Crisil’s latest note, bank loan rates have begun to decrease, which should support domestic demand.
Experts said that due to the important part of EMI in monthly income in affordable categories, a slight decrease in debt rates can also affect purchase decisions, leading to the necessary speed to support this price-sensitive demand segment.
-IANS
SKT/GKT
