Expectations | Upcoming Monetary Policy | Colliers | Square Yards | Vestian

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Mumbai, Maharashtra, 4th of August, 2025 : Below are experts’ insights on the expectations for the upcoming monetary policy.

1) Mr Akhil Saraf, Founder and CEO, Reloy : With retail inflation at record lows, corporate investment lagging, and industrial output losing steam, a substantial rate cut is not just warranted, it’s essential. Stimulus through lower interest rates can reignite demand, ease borrowing costs, and revive private sector confidence at a time when the economy needs a decisive push.

2) Mr Vimal Nadar, National Director and Head of Research, Colliers India : “Starting in February, the RBI has reduced the repo rate by 100 bps in 2025 through three successive rate cuts. Given the uncertain global economic outlook, volatile trade environment due to resetting tariffs, we expect the Central Bank to remain vigilant and keep the benchmark lending rate steady at 5.5%. The neutral stance is also likely to continue, signaling the end of easing monetary policy cycle. With the transmission of lower interest rates to end users getting completed, we expect real estate developers & lenders to benefit from reduced financing costs. Additionally, prospective homebuyers have started benefiting from lower home loan interest rates & discounts as we usher into the festive second half of 2025, keeping housing sales steady across the major residential markets of the country.”

3) Shrinivas Rao, FRICS, CEO, Vestian : “As global trade dynamics evolve in response to recent US tariff measures, the RBI is likely to adopt a cautious stance in the upcoming MPC meeting. Amid global headwinds, maintaining the current policy stance would ensure financial resilience and bolster investor confidence. Continuing the current repo rate would provide stability, especially when domestic inflation is easing and growth momentum gradually strengthening. Furthermore, if headline inflation continues with its downward trajectory, the coming quarters may see a reduction in the repo rate.”

4) Mr Piyush Bothra, Co-Founder and CFO, Square Yards : “Given the front-loaded rate cut in June and ongoing global uncertainties, particularly the recently announced US tariffs, we expect the central bank to adopt a wait-and-watch approach and maintain the current 5.50% repo rate. For property markets and the real estate sector at large, this means interest rates are likely to remain stable, sustaining the current momentum. Moreover, since the previous rate cuts have yet to be fully transmitted, the RBI is expected to take a firmer stance with banks and NBFCs to ensure the benefits are passed on to borrowers. While an immediate rate cut seems unlikely, a 25-basis point cut in the October meeting remains on the table and could serve as a significant festive season stimulus for the housing market.”