RBI Meeting: The RBI’s Monetary Policy Meeting (MPC) is scheduled to run from today, December 3rd, to December 5th. Growth and falling inflation are being re-examined. Experts believe that the repo rate is unlikely to be changed this time around. Immediate relief on EMIs seems unlikely.
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RBI Meeting: The country’s economy has gained tremendous momentum these days. Growth is the fastest in the last six quarters, and inflation has also reached record lows. In such an environment, the RBI is set to hold its final monetary policy meeting of the year on December 3rd. All eyes are focused on one thing: will there be an interest rate cut this time?
What will be the major policy decision?
This three-day meeting will determine whether the current economic environment allows for a rate cut or whether the RBI will wait a little longer. In the October meeting, the MPC kept the repo rate at 5.5% for the fourth consecutive time. At that time, RBI Governor Sanjay Malhotra clearly stated that inflation had rapidly subsided, so the policy stance was not changed.
Now that growth is stronger and inflation has further declined, the market is keenly watching whether a rate-cut cycle might resume in December.
Will there be a rate cut this time? Experts’ Opinion
India Today quoted Atul Monga, CEO and co-founder of BASIC Home Loans, as saying that the RBI is unlikely to make any changes this time. According to him, “There seems to be some easing in inflation, but the MPC will still not make any changes to the repo rate.” He added that the rate freeze provides stability to the market, but those with floating-rate loans over two years are still facing EMI pressure.
Monga says that EMIs should not be expected to decrease for now, but a slight increase may be seen in the coming months. Additionally, banks will be more cautious in their lending, prioritizing salaried individuals, especially in tier-2 and tier-3 cities.
Could GST 2.0 have a bigger impact than the RBI?
Monga also said that the repo rate isn’t the only driver of the housing market. If the initial discussions on GST 2.0 go in the right direction, it could reduce the tax burden on under-construction homes, improve input tax credits for developers, and ultimately soften property prices. This could make home loan rates more competitive for affordable housing. He believes that a stable monetary environment will allow the government to give a major push to the housing sector in Budget 2026.
REA India’s Opinion
Praveen Sharma, CEO of REA India (Housing.com), also believes that the RBI is not in the mood to change its stance this time around. He says, “The RBI has held rates on hold in previous meetings, so the likelihood of an immediate rate cut seems unlikely.” He explains that the RBI has already cut rates by 100 bps this year and may want to wait a little longer to see the full impact of this decision on the economy.
Sharma says that if the environment remains favorable in the coming days, both in terms of growth and inflation, the RBI may consider a modest rate cut, which could reduce people’s home loan EMIs. The positive thing right now is that the lending environment is quite calm and reliable, so home buyers are still receiving good support from the system.
It will be interesting to see whether the RBI prioritizes stability or initiates a gradual rate cut. For home buyers, the picture is clear: the lending environment is stable, and the market is standing with them. Now, we just wait for the announcement on Friday, which will determine whether the EMI burden will ease or remain the same in the coming months.
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