RBI Monetary Policy Meeting Highlights: Governor Sanjay Malhotra Slashes Repo Rate by 50 BPS - Hat-trick Of Rate Cuts - Cheaper Loans & Market Cheers

The 50 bps rate cut by the RBI to 5.50% signals a strong pivot toward supporting growth, especially amid signs of a slowdown in consumption and private investment. While inflation remains within the comfort zone, this proactive stance also suggests the RBI is frontloading its easing to boost confidence and liquidity. However, with global uncertainties still in play, the window for further aggressive cuts may be narrow.

-Dr. Chandrika Raghavendra, Assistant Professor - Economics & International Business (Great Lakes Institute of Management, Chennai)

"RBI’s move to reduce Repo Rate by 50 bps sends a strong signal of the regulator’s confidence on the overall sound macroeconomics of India. With inflation under control, this move will translate into meaningful cost benefits for the end-consumers. We believe, a 100 bps cumulative rate cut in 2025 so far, will set the momentum for a recovery in rural demand and enhance credit affordability for our rural borrowers."

-Dr. HP Singh, CMD, Satin Creditcare Network Ltd

"While the RBI's 50 bps cut will have an immediate impact on an EMI reduction, it is also opening doors of opportunity for homeowners to strategically reposition themselves. Borrowers with a ₹30 lakh loan of 20 years will see a decrease in their EMI of about ₹1,176 per month, and the best part is borrowers then have the choice they can either reduce their EMIs or as being discussed herein, retain their current EMI repayments to reduce the length of tenure and hence earn a greater interest saving."

-Aman Gupta, Director of RPS Group

"Stronger credit flow alone does not build a resilient economy and cheap credit doesn’t guarantee smart growth. The RBI’s rate cut will boost credit flow, but without real-time risk assessment, disciplined underwriting, and a diversified savings ecosystem, we risk repeating past cycles of overreach. In a digital first lending economy, money moves faster than monitoring and that is the real fragility."

-Vibhore Goyal, Founder at OneBanc

"The RBI's bold 50-basis-point repo rate cut, complemented by the strategic CRR reduction, marks a decisive pivot to a pro-growth stance. With inflation comfortably low, this aggressive, two-pronged approach is designed to inject significant liquidity into the system and revive consumer demand through cheaper loans. This is a clear and necessary move to stimulate private investment, while the shift to a 'neutral' policy stance wisely provides flexibility against lingering global economic headwinds."

-Dr. Simarjeet Singh, Assistant Professor, Great lakes institute of management

“The RBI’s 50 bps rate cut, taking the cumulative easing to 100 bps since February 2025, is a bold and proactive policy signal aimed at supporting broad-based economic recovery. With inflation under control and liquidity being infused through phased CRR cuts, the move substantially eases financing conditions for MSMEs, retail borrowers, and corporates. While the thrust is on reviving consumption and capex, the shift in policy stance to ‘neutral’—despite a benign inflation outlook and an above-normal monsoon forecast—underscores the RBI’s caution amid evolving global tariff risks and domestic weather-related uncertainties."

-Mahendra Patil, Founder and Managing Partner, MP Financial Advisory Services LLP

“The RBI’s decision to reduce the repo rate by 50 basis points from 6.00% to 5.50% is a timely move that will provide a major boost to the real estate sector. With inflation under control and GDP growth on a positive trajectory, the rate cut is expected to improve housing loan affordability and revive end-user demand, particularly in the mid-income and affordable segments. This frontloaded rate reduction clearly reflects RBI’s proactive stand to support domestic consumption and capital investment."

-Mr. Kaushal Agarwal, Chairman at The Guardians Real Estate Advisory

"The government’s recent decision to lower the interest rate by 50 paisa will have positive impacts on the economy. This change will lower the cost of home loans as well as other forms of credit like car loans, business loans, and MSME loans. These changes are likely to stimulate demand in the real estate market because more favorable financing conditions tend to attract homebuyers and investors to the market. Now that the interest rate has decreased from the previous 8.5 – 9% to the new interest rates, we expect an increase in activity across consumption-driven industries."

-Swapnil Aggarwal Director, VSRK Capital

"While the RBI's 50 bps cut has been audacious and visually bold in terms of allowing savings for its lenders, the repo rate N/O is at 5.5%, so home loan borrowers can clearly save from the increase. This is how the product works, if you had a ₹50 lakh loan for 20 years, you could save somewhere in the neighbourhood of ₹1,960 off the monthly EMI or just under ₹4.7 lakh over the life of the loan. The corresponding change for its aggression is showing inflation under 4% for three months"

-Annuj Goel, Chairman, Goel Ganga Developments

Indian economy progressing well, broadly on expected lines despite global uncertainties

-RBI Governor

Inflation has softened significantly over the last six months, from above the tolerance band in October 2024 to well below the target. The latest numbers are 3.2 per cent, with signs of broad-based moderation. The near-term and medium-term outlook now gives us confidence of not only a durable alignment of headline inflation with the 4 per cent target, you are aware we had earlier projected an average inflation of 4 per cent for this year, as stated in the last meeting, but also the belief that during the year, it is now likely to undershoot the target at the margin.

-RBI Governor