The Reserve Bank of India (RBI) decreased the repo rate by 25 basis points (bps), as well as its inflation estimate by 30 basis points, and the Cash Reserve Ratio (CRR) by 100 basis points in its Monetary Policy Committee (MPC) meeting today (June 6).
As a result of the CRR cut alone, an estimated Rs. 2.5 lakh crore is said to be released into the financial system. This is so much more than the market expectations had predicted and the euphoria was for everyone to see. Nifty Bank surged more than 500 points from the low of the day the moment Governor Sanjay Malhotra made the announcement.
Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd
“The twin reduction of the repo rate by 50 basis points to 5.50 percent and cash reserve ratio by 100 basis points to 3 percent respectively by the RBI provides significant relief for homebuyers across the country. This bold move by the apex bank comes at a crucial time when inflation is easing, and the economy requires strong stimulus to sustain growth. Lower borrowing costs will make home loans more affordable, thereby encouraging more buyers to enter the market. The reduction in CRR is expected to infuse significant liquidity in the banking system, which will prompt banks to lend even more.
The demand for mid and premium segment homes has already been on the rise following previous rate cuts, and this larger reduction will further accelerate interest from both homebuyers and investors. Additionally, the positive market sentiment around the possibility of further rate cuts this financial year bodes well for the real estate sector, paving the way for sustained growth and renewed confidence in the housing market”.
Ashok Kapur, Chairman, Krishna Group and Krisumi Corporation
“The Reserve Bank of India’s decision to cut the repo rate by 50 basis points, along with a 100 basis points reduction in the Cash Reserve Ratio (CRR) to 3 percent, is a strong and timely measure to support the real estate market and other industries. With today's policy changes, interest rates have now fallen by 100 basis points from last year's level.
We welcome this decision with open arms, as a reduced repo rate translates to lower borrowing costs, while the CRR cut will enhance liquidity in the banking system. Together, these steps will encourage homebuyers to make property investment decisions. Moving forward, this move will have a ripple effect on demand in the coming months across different segments of homes, ultimately contributing to sustained growth and increased confidence in the real estate market”.
Also Read: RBI Expected to Declare Another Repo Rate Cut in June MPC Meet, Say Experts
Jash Panchamia, Executive Director, Jaypee Infratech Limited
“The RBI’s decision to slash the repo rate by 50 basis points and the CRR by 100 bps is aimed at fueling consumption and accelerating investment, especially with inflation remaining within the central bank’s comfort zone. With today’s MPC outcome, the repo rate now stands at 5.50 percent, marking a cumulative reduction of 100 basis points over three sequential rate cuts. This move paves the way for commercial banks to lower their lending rates, making credit more affordable and further boosting demand in real estate.
With several scheduled commercial banks already offering home loans below 8 percent, today’s decision may lead to a broader transmission of lower rates across the lending ecosystem. This will not only ease the financial burden on borrowers but also enhance affordability across housing segments, offering significant relief to homebuyers and providing a timely push for those planning property purchases”.
Ashish Kukreja, CEO and Founder, Homesfy. in and mymagnet.io
"The RBI’s decision to cut the policy repo rate by 50 basis points (bps) to 5.50 percent is driven by easing inflation and a gradual recovery in economic activity. This marks the third consecutive repo rate cut since February 2025, with the rate falling by a total of 100 bps in the first half of the year.
With GDP growth for the financial year 2026 projected at 6.5 percent and inflation expected to remain around 4 percent, the move reflects cautious optimism amid global uncertainties. On the external front, robust services exports and strong remittance inflows have helped offset the merchandise trade deficit, keeping the current account deficit sustainable. This proactive step aims to enhance liquidity, support investments, and make borrowing, especially for homebuyers, more affordable, though the benefit depends on timely transmission by banks."
Aman Sarin, Director & Chief Executive Officer, Anant Raj Limited
“The RBI’s decision to cut the repo rate by 50 basis points—the third cut this calendar year, following two earlier cuts of 25 basis points each—reflects a clear push towards supporting credit growth and economic activity. For both existing and new borrowers, this cumulative 100 basis point reduction will provide significant relief in terms of reduced interest burden. Additionally, the move is expected to inject more liquidity into the system, further stimulating economic momentum.
We believe this will have a positive impact on the real estate sector, particularly the mid and high-end segments, as interest rates become more affordable, reduced EMI and loan eligibility improves”.
Samir Jasuja, Founder & CEO, PropEquity
“The RBI’s 50bps cut in repo rate, following the 25bps cut each in February and April, along with a 100bps reduction in CRR cut is bold, timely, and progressive given India’s growth momentum. This will enhance liquidity and spur credit growth as India’s GDP growth and economic momentum rose to a four-quarter high of 7.4 percent in Q4FY25, placing India as the fastest-growing major economy. With retail inflation in the comfort zone, a deep cut in rate and liquidity measures will spur consumption and accelerate India’s growth. Both these measures will ensure faster transmission of rate cuts so that the new homebuyers are cushioned from the impact of rising housing prices and the affordable housing segment also gets a fillip as even a slight reduction in home loan rates impacts buying decisions.
According to PropEquity, housing sales in India’s top 9 cities, have been witnessing a Y-o-Y decline, falling from 3 percent growth Y-o-Y in Q1 2024 to (-)20 percent in Q1 2025. The PropEquity data also suggests that supply of homes in affordable and mid-income category (Rs. 1 crore and below) fell by 36 percent in last two years (2022-24) in top 9 cities. In contrast, the supply of homes priced Rs. 1 crore and above has risen by 48 percent in the last two years”.
Vijay Harsh Jha, Founder and CEO, VS Realtors
“India’s economy is poised for a strong growth in FY26. The RBI’s three consecutive cuts in repo rate cuts of 100bps to 5.5 percent and 100 bps reduction in CRR aligns with its vision to support the growth momentum amidst declining inflation by making loans affordable and enhancing liquidity. India’s housing sector, though, has shown some weaknesses for the past couple of quarters, RBI’s decision on the repo rate cut and CRR reduction will help maintain liquidity and the momentum in the housing sector”.
Ankur Jalan, CEO, Golden Growth Fund (GGF)
“The three consecutive reductions (100bps) in repo rate and 100 bps cut in CRR are a welcome move by RBI to spur consumption housing demand and economic growth given the global uncertainties, growth acceleration, and decline in inflation. However, with expectations of further cuts in repo rate in FY26, the consequent decline in fixed deposit rates, currently under 7.5 percent, will disincentivize savers and HNI/UHNI investors, prompting them to look for potentially high-return asset classes like Alternative Investment Funds (AIFs) which not just has regulatory oversight but also offers risk diversification and high returns”.
Sanjeevini Group Chairman and Founder, Umesh Gowda H.A
“RBI’s decision to undertake a deep 50bps cut in repo rate and 100 bps cut in CRR in view of the built-up in growth momentum, fall in inflation and geo-political uncertainties, will be a big boost for the overall economy and especially for the housing sector. Home loans have already fallen below the 8 percent mark and today’s measures will further reduce home loan rates thereby driving demand for mid-income and affordable homes. The Bengaluru housing market is end-use driven with most sales happening in the Rs. 50L-2cr bracket. Reduction in home loans will have a far-reaching impact on this market which boasts of strong infrastructure, heightened corporate activity and ample employment opportunities, the major drivers for housing demand".
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