RBI monetary policy 2025 updates: US tariff impact much less on India, says RBI governor

TREVOC MD Gurpal Singh Chawla has welcomed the repo rate reduction, saying that he is hopeful that the benefits will be passed on to homebuyers.

“We welcome the RBI’s decision to reduce the repo rate by another 25 basis points, marking the second consecutive cut in the last two months. While February’s reduction didn’t translate into lower lending rates across the board, we are optimistic that this move will encourage banks to pass on the benefits to homebuyers,” he said.

Satish Chandra Aluri from Lemonn Markets Desk said the RBI's monetary policy shows a shift in stance.

“The outcome of the RBI meeting was largely in line with expectations, with a unanimous decision to cut the repo rate by 25 basis points to 6%. In a notable move, the Monetary Policy Committee (MPC) also shifted its stance from ‘neutral’ to ‘accommodative’, signaling the possibility of further rate cuts in the coming months,” he said.

“Forecast revisions further reinforced this shift in priorities. GDP growth for FY26 has been revised downward from 6.7% to 6.5%, while inflation expectations have been eased from 4.2% to 4%. This suggests that the RBI is placing greater emphasis on supporting growth, particularly in the face of rising external risks such as global trade tensions, while remaining confident that inflation will stay within manageable levels,” Aluri added.

Rajjath Goel, MD, MRG Group, hailed RBI's rate cut as a ‘timely boost’ to the real estate sector in the country.

"The RBI’s decision to bring the repo rate to 6% comes as a timely boost for the real estate sector. Lower interest rates translate to more favorable financing options, even for high-ticket properties. For the housing sector, it translates into lower borrowing costs and renewed buyer interest, especially from first-time homeowners. We see this announcement as a positive push toward broader recovery in real estate and the economy at large," Goel said.

StockGro founder and CEO Ajay Lakhotia hailed the RBI's decision to cut the repo rate.

“RBI is planning to further boost India’s consumer-driven economy, complementing the reforms made in the 2025 Budget. These rate cuts will increase lending and flow of capital in the economy, increasing both production and consumption, and boosting the GDP of India,” Lakhotia said.

“The RBI’s rate cut is a timely step to keep the economy on track as global uncertainties rise. Banks are well-placed to lend more actively, and with inflation expected to ease further, consumers could feel more confident about big-ticket purchases. Many sectors are going to benefit from the rate cut. With borrowing costs now slightly lower, homebuyers and developers could find more breathing room, giving a welcome push to the real estate sector,” says Bharat Dhawan, managing partner, Forvis Mazars in India.

On the rural side, strong farm activity is likely to boost income levels, which may support spending in smaller towns and help keep consumption steady. RBI's stance has shifted from neutral to accommodative now, which means RBI may go for another 25-bps cut in the second half of 2025, especially as the focus gradually shifts toward reviving demand and encouraging investment in a slowing global environment. Overall, the policy balances caution with action, aiming to protect growth without losing sight of inflation risks,"

“The RBI’s decision to bring the repo rate to 6% comes as a timely boost for the real estate sector. Lower interest rates translate to more favorable financing options, even for high-ticket properties. For the housing sector, it translates into lower borrowing costs and renewed buyer interest, especially from first-time homeowners. We see this announcement as a positive push toward broader recovery in real estate and the economy at large,” says Rajjath Goel, MD, MRG Group.

RBI monetary policy 2025 live updates: “RBI’s 25 bps rate cut to 6% and shift to an accommodative stance signals a growth-focused policy. This is a positive for liquidity and demand recovery. Rate-sensitive sectors like banks, NBFCs, real estate, and autos stand to gain,” says Pranay Aggarwal, Director & CEO of Stoxkart.

RBI monetary policy 2025 live updates: RBI Governor Sanjay Malhotra says that the Indian Rupee is quite stable and there are 'sufficient' reserves available. “Central bank is not targeting any specific level of rupee, to intervene only during excessive volatility,” he adds.

“It's a joint effort... who does more of the heavy lifting etc. It's a join effort... the government has done its bit in the budget that you saw. A number of measures... whether in terms of the tax rebates on the personal income tax side, and we have reduced repo rates. We have changed the stance going forward... which means that the direction of the policy repo rates is downwards... where it will reach... we really don't know,” says RBI Governor Sanjay Malhotra in the presser, according to PTI.

RBI monetary policy 2025 live updates: “The Impact of US tariff hike is much less on India than others; we have a comparative advantage,” says RBI governor in the post-policy presser.

RBI monetary policy 2025 live updates: RBI Governor Sanjay Malhotra says that the Central bank has reduced India's growth rate estimate primarily because of tariff-related uncertainties, reports PTI.

RBI monetary policy 2025 live updates: “More than inflation, we are concerned about tariff impact on growth,” says RBI Governor Sanjay Malhotra.

RBI monetary policy 2025 live updates: “A Reduction in repo rate by 25bps and bringing it to 6%; RBI’s decision was largely on the expected lines. Amid high market volatility and recent tariff hikes, this move will positively impact the country’s economy, further affecting the real estate market, too,” says Dr. Gautam Kanodia, founder of KREEVA and Kanodia Group.

"Considering the market dynamics, this reduction would reduce home loan rates, urging more first-time buyers to invest in new property and encouraging developers to lead new projects and expand their developments in emerging areas. This will definitely provide a lift to the real estate market and support broader economic growth," he adds.

RBI monetary policy 2025 live updates: Binod Kumar, MD & CEO, Indian Bank, says that RBI's 25 basis points reduction in the repo rate to 6% is a timely intervention.

“Change in stance to accommodative is sentimentally positive allowing room for better liquidity and growth. Together, they will support both MSME and retail demand. The MSME sector which contributes nearly 30% to India's GDP and accounts for over 40% of exports will benefit from this move as it will ease credit costs and improve cash flows which are critical for recovery and growth in the evolving market dynamics,” he adds.

RBI monetary policy 2025 live updates: Harsh Gupta, CEO of Sundream Group, says: “The Reserve Bank of India's decision to reduce the repo rate by 25 basis points to 6% marks the second consecutive cut this year, underscoring its commitment to stimulating economic growth amid global trade tensions.”

He adds: “This move is expected to lower borrowing costs, providing a favorable environment for sectors like real estate to thrive. By making credit more affordable, it encourages investment and development, potentially leading to increased activity and stability within the industry.”

RBI monetary policy 2025 live updates: “We welcome the RBI’s decision to reduce the repo rate by 25 basis points to 6.00%. At a time of global economic volatility caused by increasing tariffs and geopolitical tensions , this move reflects a continued shift toward a pro-growth stance amid easing inflation and a stabilizing macroeconomic outlook. With CPI inflation expected to moderate to 4.5%, the rate cut is well-timed to uplift consumer sentiment and enhance borrowing capacity—especially in the housing sector. It is likely to improve home loan affordability, stimulate housing demand, and provide a strong impetus to the mid-income and affordable segments, where interest rate sensitivity remains high,” says Boman Irani, president, Confederation of Real Estate Developers' Associations of India (CREDAI).

RBI monetary policy 2025 live updates: RBI Governor Sanjay Malhotra on Wednesday announced the decision after the MPC's three-day meeting held on April 7, 8, and 9.

Here are the key announcements:

• The RBI has announced a 25-basis-point cut in the repo rate, reducing it from 6.25% to 6%.
• The central bank has lowered the real GDP growth forecast for FY25-26 to 6.5% from 6.7% (announced in February) due to global uncertainties.
• The bank has lowered the inflation projection for the current fiscal to 4% from 4.2%, taking into account good agricultural output and falling crude prices.
• The RBI has decided to change its policy stance to 'accommodative' from ‘neutral’.
• Food inflation dropped to a 21-month low of 3.85 in February, the RBI said.

RBI monetary policy 2025 live updates: “The global economic outlook is fast changing. The recent trade tariff-related measures have exacerbated uncertainties clouding the economic outlook across regions, posing new headwinds for global growth and inflation,” RBI governor Sanjay Malhotra said in his address.

He added: “Amidst this turbulence, the US dollar has weakened appreciably; bond yields have softened significantly; equity markets are correcting; and crude oil prices have fallen to their lowest in over three years.”

RBI monetary policy 2025 live updates: CPI inflation for the financial year 2025-26 is projected at 4%, with Q1 at 3.6%; Q2 at 3.9%; Q3 at 3.8%; and Q4 at 4.4%.

RBI monetary policy 2025 live updates: The Central bank's decision of cutting the repo rate by 25 bps is a timely and positive step, says NAREDCO president G Hari Babu.

“The RBI’s decision to bring down the repo rate by 25 basis points and adopt an accommodative stance is a timely and positive step for the real estate sector. Lower interest rates translate into more affordable home loans, which will likely spur housing demand across various categories,” he says.

“This move is expected to lead to higher residential sales, better liquidity in the market, and a gradual clearing of unsold inventory—giving developers the confidence to launch new projects.”

RBI monetary policy 2025 live updates: The RBI has cut the repo rate by 25 basis points to 6%, offering relief to borrowers with likely reductions in loan EMIs.

RBI monetary policy 2025 live updates: The RBI has lowered its inflation projection for FY26 from 4.2% to 4%.

The quarter-wise projection stands at:

Q1 at 3.6%

Q2 at 3.9%

Q3 at 3.8%

Q4 at 4.4%

RBI monetary policy 2025 live updates: RBI Governor Sanjay Malhotra says that the MPC has lowered the real GDP growth forecast for FY25-26 to 6.5% from 6.7% (announced in February) due to global uncertainties.

RBI monetary policy 2025 live updates: RBI Governor says that the real GDP is projected for FY25-26 at 6.5%. The quarter-wise projection stands at:

Q1- 6.5%

Q2- 6.7%

Q3- 6.6%

Q4: 6.3%

RBI monetary policy 2025 live updates: Governor Sanjay Malhotra says that the MPC has decided to change its policy stance to 'accommodative' from ‘neutral’.