Blasé Capital RBI REACTIONS

Benign inflation outlook provides policy space to support the growth momentum. The language seems to indicate one more rate cut in the coming months as current year CPI inflation has been revised lower to two per cent, and GDP growth upwards to 7.3 per cent. As per the RBI Governor, core inflation pressure is still low given that 50 basis points of increase in core inflation is contributed by the metal prices.

Murthy Nagarajan,

Head-Fixed Income, Tata Asset Management

For the real estate sector, this rate cut builds on the momentum created during the recent festive season and GST rationalisation of key construction materials. Lower borrowing costs will improve affordability and buyer sentiment, particularly in affordable and mid-income housing segments.

Vimal Nadar,

National Director, Colliers India

The RBI delivered what the bond market was hoping for. The unanimous decision underscores confidence in the disinflation trend and signals a supportive stance for growth. Moreover, front-loading OMOs creates the possibility of additional liquidity.

Siddharth Chaudhary,

Head (Fixed Income), Bajaj Finserv AMC

The MPC’s decision was assertive. The governor noted disinflationary pressures in the economy, which created room for a rate cut despite ongoing trade uncertainties, and early signs of weakness in indicators such as the IIP and electricity demand. We anticipate an additional 25 bp rate cut in February ’26 based on our forecast of further downside surprises in inflation over the next 2-3 months.

Radhika Piplani,

Chief Economist, Motilal Oswal Group

With inflation printing significantly below projections, real rates were getting too high, potentially choking future growth. Nominal growth needed a boost in order that fiscal targets remain realistic. The policy addresses the live issues in comprehension, and is expected to significantly boost growth in coming quarters. Going ahead, as the possibilities for further rates remain alive, interest rates are expected to ease gradually and marginally.

Mahendra Kumar Jajoo,

CIO (Fixed Income), Mirae Asset Investment

It reinforces a supportive monetary environment for boosting consumer sentiment. Coupled with the income-tax relief measures announced in the Union Budget, and the landmark GST 2.0 reforms, this creates strong enablers for further enhancing affordability and accessibility. SIAM remains optimistic that this alignment of monetary and fiscal measures will accelerate growth of the Indian auto industry.

Shailesh Chandra,

President, SIAM

The central bank clarified that the primary purpose of the OMO was to manage liquidity, and not to directly influence yields. The RBI governor assured to provide ample system liquidity in the current rate environment, with OMOs to be conducted across maturities. He noted that the tolerance towards the rupee depreciation had not changed, and repeated that it will be allowed to move as per the market forces. Growth-inflation dynamics continues to provide space to support the growth momentum, implying that conducive financial conditions are here to stay.

Naval Kagalwala,

COO, Shriram Wealth

The repo-rate cut would bring more relief to both prospective and existing home loan borrowers. Transmission of the rate cut would be faster for floating rate loans linked to repo rate. The date of transmission would depend on the interest reset dates set by their lender. As banks would fully pass the benefits over time, we should see stronger demand for credit for the next few months. The rate cut should boost spending and investments from existing borrowers.

Santosh Agarwal,

CEO, Paisabazaar

The RBI’s decision is a timely signal that the larger economic cycle is shifting toward growth, and it comes at a particularly important moment for the mid-segment where affordability plays a defining role. The mid-income category has been the backbone of residential demand through 2024 and 2025, and this policy move strengthens that foundation further. This adds to the confidence that the real estate market is entering a more balanced, expansionary phase. 

Mohit Goel,

MD, Omaxe

The RBI’s decision will significantly support housing demand in Tier 2 and Tier 3 cities, where affordability plays a central role in purchase decisions, and homebuyers are sensitive to EMI movement. Improved borrowing costs are expected to bring greater confidence to end-users, and accelerate decision-making among families. For developers in emerging cities, reduced funding pressure helps maintain construction momentum and encourages investment.

Amrita Gupta,

Director, Mangalam Group