RBI Holds Repo Rate, Fueling Real Estate Stability & Growth

The RBI's decision to maintain the repo rate at 6.5% aims to stabilize the real estate sector while revising growth upwards to 7.2% for FY 2024-25. Controlled inflation and potential future rate cuts promise heightened affordability, expected to boost housing demand and spur sectoral growth across industries.

The Reserve Bank of India's decision to maintain the repo rate at 6.5% is seen as a stabilizing move for the real estate sector, experts said on Friday. The growth forecast for FY 2024-25 has been revised upwards to 7.2% from 7%, while inflation remains unchanged at 4.5%.

The RBI's Monetary Policy Committee kept the repo rate unchanged for the eighth straight meeting, adopting a hawkish stance of 'withdrawal of accommodation,' according to RBI Governor Shaktikanta Das.

Experts noted that controlled inflation could pave the way for future rate cuts, promising increased affordability and heightened demand in the real estate market.