1. Kunal Shah, Co-founder, SURE
“As expected, RBI MPC has delivered a dovish cut in interest rates, acknowledging that inflation trend is much lower, if we take out impact of gold prices, realised inflation this year is only 1.5-2.0%. Leaving the rooms for one more cut in future if growth slows down.
The cut is timely and will bring relief for homebuyers, lowering EMIs and reducing total interest outflow. For a home loan of ₹50 lakhs, borrowers could now save around *₹1.80 lakh over the 20y tenure, further improving affordability and boosting housing demand.
For banks, the rate cut may compress lending margins in the short term, but it is also expected to stimulate higher credit demand, particularly in home loans, supporting overall portfolio growth. With rates continuing to soften, 2026 is shaping up to be more favourable for both borrowers and lenders”.
2. CA Kinjal Shah, Vice President, Bombay Chartered Accountants’ Society (BCAS)
“With the 25-basis-point reduction in the repo rate, bringing it to 5.25%, the Reserve Bank of India has delivered four rate cuts in 2025—25 bps each in February and April, a 50-bps cut in June, and 25 bps in December, bringing the cumulative reduction for the year to 125 bps. The decision was unanimous and reflects the RBI’s continued growth-supportive policy stance amid a benign inflation outlook.
GST rationalisation has boosted domestic demand, and festival-related spending has further contributed to growth across sectors.
Liquidity conditions are being addressed through OMO purchases of ₹1 lakh crore and a $5 billion dollar–rupee swap in December to inject durable liquidity into the system.
Despite global headwinds, the Indian economy has shown resilience and is poised to maintain high growth, with the real GDP outlook for FY26 being revised to 7.3%. The combination of supportive monetary policy, robust domestic demand and growth outlook provides guidance on how credit and financial conditions may evolve over the near term.”