RBI May Go For 50 Bps Rate-Cut

Mumbai: RBI is likely to go for a rate-cut by upto 50 basis points post its three-day Monetary Policy Committee meeting which begins on June 04. Moreover, experts are looking at cumulative rate cut over the cycle could be 100 basis points.

Dr Soumya Kanti Ghosh, SBI Group’s chief economic advisor, says, “We expect a 50-basis point rate cut in June policy as a large rate cut could reinvigorate a credit cycle. Cumulative rate cut over the cycle could be 100 basis points.”

The RBI is once again expected to offer major relief to homebuyers. If the rate cut materializes, it would mark the third consecutive reduction and provide a significant boost to the overall economy, particularly the housing sector.

Pradeep Aggarwal, Founder & Chairman, Signature Global (India) says, “If the rate cut materializes, it would mark the third consecutive reduction and provide a significant boost to the overall economy, particularly the housing sector.” Given that several scheduled commercial banks have been reducing their lending rates following the previous two RBI MPC outcomes, another rate cut at this juncture would act as a catalyst for increased housing demand across segments.

Ashok Kapur, Chairman, Krishna Group and Krisumi Corporation says, “The RBI had adopted an accommodative stance in its previous policy review meeting, and it is expected that we will again see a cut in the repo rate by 25 bps in the upcoming policy review cycle, giving further relief to the various sectors of the economy. The real estate sector in particular stands to benefit from a reduction in policy rates, as it makes home loans affordable for buyers, pushing housing demand upwards.” A boost to real estate demand will also have a multiplier effect on allied sectors like cement, steel, and construction equipment, further driving economic momentum.