CREDAI National welcomes RBI’s decision to hold repo rate at 5.50%; urges faster transmission; expects 50 bps easing in FY26
Mumbai, October 1, 2025 — The Confederation of Real Estate Developers’ Associations of India (CREDAI) welcomes the Reserve Bank of India’s decision to maintain the policy repo rate at 5.50%, a move that provides the housing sector with much-needed stability in a period of global economic uncertainty.
Stable rates are critical for homebuyers, who benefit from steady borrowing costs and gain confidence in long-term planning, while developers are assured of predictability in financing and investments.
The recent rationalisation of GST has also lifted sentiment and boosted demand across sectors, reinforcing the overall growth cycle. With gold and equity markets continuing to remain volatile, housing stands out as a safer and more dependable long-term investment for Indian families.
Although CREDAI was expecting a 25-basis-point reduction in this meeting, the sector remains hopeful that the RBI will deliver a calibrated 50-basis-point cut during this financial year, in two tranches, subject to economic conditions.
CREDAI emphasises that it is now crucial for banks and housing finance companies to swiftly pass on the benefits of the current policy stance to both new and existing borrowers. Timely transmission will ensure that housing demand remains strong, especially during the ongoing festive season.
Key Takeaways:
• Repo rate unchanged at 5.50% ensures stability for housing.
• GST cuts on inputs like cement and construction materials will reduce costs and support affordability.
• CREDAI expects 50 bps rate easing in FY26, in two tranches.
• Calls for faster pass-through by banks to sustain festive demand momentum.
“India’s housing demand remains structurally strong. If rate stability is effectively transmitted and calibrated easing follows later in the year, the real estate sector can deliver a powerful multiplier effect across jobs, materials, consumption, and urban infrastructure,” CREDAI said.