Expert Reactions on RBI’s MPC Decision – Repo Rate Cut to 6.25 percent
Sahil Lakshmanan, Chief Business Officer, CarePal Money
The RBI’s decision to cut the repo rate to 6.25% is a strategic move to stimulate economic growth while inflation remains under control. With the MPC noting that inflation is expected to moderate in FY26, this rate cut signals confidence in price stability, giving room for policy easing. For borrowers, lower EMIs on loans could improve affordability and boost consumption. However, the market response has been measured so far, with the Indian rupee remaining largely unchanged against the U.S. dollar. This suggests that global factors and liquidity conditions will play a crucial role in determining the long-term impact of this decision.
With the policy stance remaining ‘neutral,’ the RBI is maintaining flexibility, indicating that future rate actions will depend on economic data. The key focus now will be on how effectively banks transmit this cut and whether it translates into stronger credit demand and sustained economic momentum.
Ankur Maheshwari, CFO, Freo
The RBI’s decision to reduce the repo rate to 6.25% is a welcome move, especially as it’s the first cut post-pandemic. This decision has far-reaching benefits—lower borrowing costs will encourage more individuals to invest in homes, particularly those who were previously on the fence due to rising construction costs. Additionally, with tax relief measures announced in Budget 2025, people will have more disposable income, making access to credit easier. While borrowing becomes more affordable, attractive fixed deposit rates will continue to ensure that savers have secure and rewarding investment options. As a fintech, we see this as a balanced move that supports both borrowers and savers, fostering overall financial growth.
PropEquity & InfraMantra React to RBI Monetary Policy
Samir Jasuja, Founder and CEO of PropEquity
The RBI’s focus on maintaining stable inflation while promoting growth is a welcome move and in line with the efforts of the government. The 25bps cut in repo rate, along with the announcements in the Budget towards boosting consumption, will help increase economic activity and direct investments towards the real estate sector, especially in affordable and mid-income housing. Making borrowing cheaper will not only help homebuyers, both new and old but also provide liquidity to the developers.
According to PropEquity, the supply of homes in the affordable and mid-income category (priced Rs 1 crore and below) across the top 9 cities has dipped by 36% in the last two years and 30% in the last year in 2024 with Hyderabad and NCR witnessing drastic fall in supply in this category.
Mr. Garvit Tiwari, Director & Co-Founder, InfraMantra
The 25bps cut in repo rate will help reduce the EMI of home loan borrowers and make new loans cheaper. This is a welcome move because real estate has come under some pressure in the last few quarters. While the luxury real estate segment may not be impacted much, this move will immensely benefit affordable and mid-income housing. Declining urban consumption is a cause for concern and with this cut, some reversal is likely in the coming quarters.
Colliers, India Sotheby’s, Vestian & Square Yards React to RBI Monetary Policy
1. Amit Goyal, Managing Direct, India Sotheby’s International Realty
The RBI’s 0.25% rate cut after five long years—is the much-needed oxygen for the Indian economy, more particularly for the real estate sector.
It lightens EMIs, boosts investments, and signals a pro-growth stance. Coupled with income tax breaks for incomes up to ₹12 lakh in the Union Budget, it widens the path to homeownership for many aspiring buyers.2. Vimal Nadar, Head of Research at Colliers India
In line with expectations, RBI in its first MPC meeting after the Budget, has decided to reduce the repo rate by 25 basis points to 6.25%, the first rate cut in nearly five years, following a prolonged cycle of rate hikes and stability triggered by global uncertainties. This comes against the backdrop of easing inflation and moderation in growth prospects. The Central Bank, however, maintains confidence in the robustness of the domestic economy and projects the GDP growth rate at 6.7% in FY 2025-26. As housing demand has begun to stabilize after witnessing record sales in the last 2-3 years, this rate cut comes at an opportune time and will have a significant bearing on boosting homebuyer sentiments. The rate cut along with the recent budgetary announcements related to the creation of the Urban Challenge Fund and tax reliefs under the new regime, are likely to stimulate urban growth and enhance domestic consumption. Higher disposable income and lowering of financing costs stand to benefit homebuyers and developers alike. Furthermore, the recent allocation of INR 15,000 Crores for the SWAMIH II fund is likely to expedite the completion of stressed projects, boosting liquidity and spurring home-buying sentiments. Overall, evident tailwinds should boost real estate demand across asset classes in upcoming quarters.
3) Shrinivas Rao, FRICS, CEO of Vestian,
“The RBI’s 25 bps reduction in the repo rate was anticipated, given the slowdown in GDP growth to 5.4% in the second quarter of FY’25, marking the slowest expansion over seven consecutive quarters. This rate cut, the first in nearly five years, aims to bolster market liquidity. It’s likely to buoy the real estate sector with expectations of major banks trimming mortgage rates. However, it is also expected to exert downward pressure on rupee value in international markets, barring foreign investments.”
4) Mr Piyush Bothra, Co-Founder and CFO, Square Yards
“The Reserve Bank of India’s decision to cut the repo rate by 25 basis points to 6.25% is a welcome move for the real estate market. This will lower borrowing costs for home buyers, making home loans more accessible and improving buyer sentiment. Additionally, it could enhance liquidity in the banking system, easing access to financing for developers. Combined with recent tax reforms, stable inflation projections, and sustained economic growth, it will act as a strong tailwind for the residential real estate sector. Needless to say “achche din” for real estate will continue for a long time”
Anant Raj Ltd. Comments on RBI MPC Outcome
Mr. Aman Sarin, Director & Chief Executive Officer, Anant Raj Limited
We welcome the RBI’s decision to cut policy rates, a crucial step toward stimulating consumption and strengthening purchasing power.
This rate reduction is set to bring down lending rates, making borrowing more accessible and affordable for consumers. In particular, it serves as a strong catalyst for the real estate sector, encouraging fence-sitting homebuyers to move forward with their purchase decisions. Given the RBI Governor’s assurance that all economic factors will be carefully considered to maintain balanced growth and stability, this cut could be helpful in sustaining economic momentum.
Bank of Baroda’s Chief Economist Comments on Monetary Policy
Madan Sabnavis, Chief Economist of Bank of Baroda’s comment on Monetory policy
“ The cut in repo rate and the commentary does indicate that the MPC could be looking more at the inflation-growth dynamics instead of only inflation which was the earlier perception, going forward. Therefore, we could expect more rate cuts based on economic data. We do think the GDP forecast made for next year at 6.7% is very much doable. Inflation at 4.2% will be contingent on both a good monsoon and limited impact of imported inflation. There could be an upside here given global uncertainty, and needs to be watched. The RBI has also clearly stated to the market that it is not targeting an exchange rate and will also ensure orderly liquidity in the market.”
Vahan.ai Secures Investment from Persol Group Amid India’s Gig Economy Boom
Bangalore, 7th February 2024: Vahan.ai, India’s leading AI-powered hiring platform for blue-collar workers, has secured investment from Persol Group, a prominent HR services provider in the Asia-Pacific region based in Tokyo, Japan. This strategic partnership aligns with Persol Group’s foc on expanding its footprint in the Indian market, which is witnessing significant growth in its economy.
India’s gig economy is at an inflection point, with demand for gig workers surging by 25–30% in 202 primarily driven by the quick commerce sector. According to industry experts, gig hiring in this sector is projected to grow by a staggering 60% in 2025, fueled by the rapid expansion of dark stores, increased investments, and penetration into Tier II and III cities. The Niti Aayog projects that India’s gig workforce, currently at 9–10 million, could reach 23.5 million by 2029–30, showcasing the sector’s immense long-term potential.
With this investment, Vahan.ai aims to scale its operations, focusing on emerging sectors like manufacturing and retail, and continue enhancing its cutting-edge AI technology to meet the evolving needs of employers and workers alike. Earlier in September 2024, Vahan.ai raised $10 million in its Series B funding round led by Khosla Ventures, along with Y Combinator, US-based VC firm Gaingel, and Indian tech entrepreneur Vijay Shekhar Sharma, Founder of Paytm, amongst others.
Manufacturing, a key pillar of the Viksit Bharat@2047 vision, is projected to grow from 15% of India’s GDP to over 25%, adding USD 320 billion in gross value added (GVA). Meanwhile, the retail sector is expected to expand from USD 779 billion in 2019 to over USD 2 trillion by 2032, with e-commerce alone growing at an annual rate of 11.45% to reach USD 91 billion by 2029, and the FMCG sector expected to be worth approximately USD 616 billion by 2027.
To capitalize on these growth trends, Vahan.ai will also invest in advancing its AI technology. Currently, Vahan’s AI Recruiter conducts interviews in English and Hindi, with plans to support eight major Indian languages and numerous dialects within the next year, making the platform even more accessible and inclusive.
Commenting on the partnership, Mr. Madhav Krishna, CEO and Founder, of Vahan.ai stated, “India’s gig economy is on the cusp of a remarkable transformation, with smaller cities and emerging sectors driving a surge in demand for gig workers. Quick commerce alone is expected to double its workforce needs in these regions, creating opportunities for millions of individuals to access jobs and improve their livelihoods. By combining our AI-driven solutions with Persol’s deep expertise in workforce management, we aim to scale our technology, expand into new sectors, and create a more inclusive and efficient employment ecosystem. This collaboration positions us to transform hiring practices and empower both workers and employers as we work together to build Bharat.”
In 2024, Vahan.ai achieved remarkable milestones, solidifying its position as India’s largest recruitment platform for the quick commerce industry. The platform facilitated 2.6 lakh job placements across 920 cities, with leading companies such as Zomato, Swiggy, Flipkart, Zepto, Blinkit, Amazon, Rapido, and Uber. Through its AI recruiter, Vahan.ai saved over 20,000 hours of human recruiter effort, significantly improving hiring efficiency for employers. With the current invest
Vahan.ai plans to expand its reach further and focus on developing technologies that enhance the gig hiring ecosystem in India.
Shingo Ishida, Partner and Head of APAC Investment at Persol Group said,
“We are thrilled to collaborate with Vahan.ai, whose innovative technology and advanced business operations, driven by deep market insights, align perfectly with our broader strategy in India. Vahan’s Master Agency Platform is designed to revolutionize talent acquisition and workforce management by leveraging AI-driven solutions. Through this partnership, the PERSOL Group will support the expansion of Vahan’s reach, helping businesses in India access skilled talent more efficiently.”
As the Indian gig economy continues to grow, investments in innovative platforms like Vahan.ai are key to shaping its future and ensuring inclusive growth across sectors and regions.
RBI MPC announcement – Nikunj Agarwal, Head – Fund Raise, Finance, Alliances, Propelld
Nikunj Agarwal, Head – Fund Raise, Finance, Alliances, Propelld.
“We welcome the repo rate cut by 25 bps to 6.25% which will benefit non-banking financial companies (NBFCs). Reduced rates will increase the profit margins of NBFCs and drive more participation in the market. At Propelld, we have been managing assets and liabilities prudently by keeping NPAs at the lowest level.”
The RBI Monetary Policy announced today
Samir Jasuja, Founder and CEO of PropEquity
The RBI’s focus on maintaining stable inflation while promoting growth is a welcome move and in line with the efforts of the government. The 25bps cut in repo rate, along with the announcements in the Budget towards boosting consumption, will help increase economic activity and direct investments towards the real estate sector, especially in affordable and mid-income housing. Making borrowing cheaper will not only help homebuyers, both new and old but also provide liquidity to the developers.
According to PropEquity, the supply of homes in the affordable and mid-income category (priced Rs 1 crore and below) across the top 9 cities has dipped by 36% in the last two years and 30% in the last year in 2024 with Hyderabad and NCR witnessing drastic fall in supply in this category.
Mr. Garvit Tiwari, Director & Co-Founder, InfraMantra
The 25bps cut in repo rate will help reduce the EMI of home loan borrowers and make new loans cheaper. This is a welcome move because real estate has come under some pressure in the last few quarters. While the luxury real estate segment may not be impacted much, this move will immensely benefit affordable and mid-income housing. Declining urban consumption is a cause for concern and with this cut, some reversal is likely in the coming quarters.
Real Estate Sector- RBI MPC’s decision to Cut the Repo Rate
Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd.
“The RBI’s decision to cut the repo rate to 6.25%—its first reduction in nearly five years—signals a pro-growth shift aimed at sustaining India’s economic momentum. With GDP growth projected at 6.7% for FY26, this move will enhance liquidity, encourage investments, and stimulate demand across key sectors.
For real estate, a rate cut after such a long period is a significant boost. Lower borrowing costs will improve home affordability, strengthening buyer sentiment, particularly in the mid-income and premium housing segments. Historically, reduced interest rates have triggered an upswing in housing demand, benefiting both homebuyers and developers. Additionally, improved credit access will support developers in securing funding for project execution, ensuring steady supply and timely deliveries.
The real estate sector, contributing nearly 7% to India’s GDP and projected to reach 13% by 2030, will gain further momentum as urbanization accelerates and infrastructure investments expand. This move will also positively impact allied industries such as cement, steel, and construction materials, creating a multiplier effect on employment and overall economic activity. With a sustained focus on affordability and sustainable development, India’s housing market is well-positioned for long-term growth.”
Mr. Akash Khurana, President and CEO, Krisumi Corporation
The Central Bank’s unanimous decision to cut the repo rate by 25 bps to 6.25 percent is a welcome move that will enhance liquidity in the economy, making credit more accessible and boosting overall consumption. This follows the last MPC’s decision to reduce the Cash Reserve Ratio (CRR) by 50 basis points, which has already injected significant funds into the banking system. Lower interest rates are expected to stimulate housing demand by making home loans more affordable, strengthen market confidence, and provide much-needed momentum to the real estate sector, ultimately supporting economic growth.
Mr. Sahil Agarwal, CEO, Nimbus Group
We welcome the RBI’s decision to cut the repo rate. There were strong expectations for a modest 25 bps rate cut in today’s monetary policy meeting, and the RBI has delivered on those expectations. The decision was driven by the need to support GDP growth, inflation remaining within a comfortable range for the past few quarters, and prevailing tight liquidity conditions. Additionally, global trade dynamics and financial market trends further reinforced the case for a rate reduction.
The repo rate cut will not only improve liquidity but also boost consumption and purchasing power, ultimately driving economic growth. Lower borrowing costs are set to provide a significant push to the real estate sector, as reduced home loan interest rates make homeownership more accessible. This move is expected to encourage higher demand for housing, benefiting both end-users and investors alike.
Mr. Udit Jain, Director, OneGroup
The 25 basis point cut in the repo rate is a welcome move, particularly for homebuyers in the affordable and mid-segment categories. Given that these housing segments are highly cost-sensitive, a lower EMI burden will undoubtedly encourage more buyers to take the plunge into homeownership.
Additionally, the rate cut is expected to provide a strong boost to housing demand in Tier II and Tier III cities, where affordability plays a crucial role in purchasing decisions. Combined with other favorable factors—such as increased savings from revised tax slabs in Budget 2025-26 and the upcoming implementation of the 8th Pay Commission—this move sets the stage for sustained growth in the real estate sector. The combined impact of these measures will give a much-needed boost to industries linked to housing, enhance home loan eligibility, improve affordability, and drive higher demand for housing in the near future.
ACC Break Workplace Silos to Enhance Sustainability Reporting
Chandigarh, 7 February 2025: The latest instalment of ACCA’s sustainability reporting series is Sustainability Reporting: Risk and Materiality, which takes a practical approach to helping businesses determine material information for sustainability reporting.
Author Aaron Saw, head of corporate reporting insights – financial, at ACCA said: ‘Many organisations have siloed management and reporting of financial and sustainability-related matters. As a result, they don’t realise they already have access to insights they need for reporting. To streamline cost and effort and to produce connected information, it makes sense to leverage existing risk-management processes to identify and manage sustainability-related risks and opportunities.’
The article sets out three steps to determine material information to be disclosed:
1. Identify the organisation’s sustainability-related risks and opportunities (SRROs)
2. Assess whether SRROs could affect the organisation’s prospects
3. Determine material information for disclosure
Each step is supplemented with illustrative, anonymised real-life examples to inspire our community of accountants, finance and business professionals to learn, adapt and improve their approaches to identifying and communicating risks and opportunities.
Given the severe operational disruptions that weather-related events are causing many businesses, the examples featured are biased towards climate-related risk. Small and medium sized entities (SMEs) also feature in the examples to demonstrate how smaller organisations approach reporting.
The article emphasises the importance for organisations to take a holistic approach in creating and communicating material information about their SRROs and recommends all organisations to:
- allocate resources to start identifying SRROs arising from the resources and relationships in the value chains on which they depend and those that their activities would affect
- provide the most relevant sustainability-related information they can and continue to improve the reporting process over future reporting cycles
- use knowledge and expertise gained in determining material information in one reporting cycle to improve the communication of material information in the following cycle.
Aaron Saw concludes: ‘We encourage everyone to work collaboratively with peers in the same industry, or within the same value chain. In this way we can further refine the approach to identifying SRROs, manage the risks or realise identified opportunities, and measure the relevant metrics and provide better information to support decision-making.’