Views on Rate cut | Aadhar Housing, hBits & Vested Finance

Views on Rate cut | Aadhar Housing, hBits & Vested Finance

Rishi Anand, MD & CEO, Aadhar Housing Finance Limited

“Today’s rate cut by 25 basis points after a gap of nearly five years is much in line with our expectations and set to provide overall support as well as be a catalyst to growth enablers outlined in the recent union budget. The benefits of this rate cut will begin to accrue on an immediate basis and are expected to be fully realized in the next 3 to 6 months, benefiting customers. This step is in the right direction aligning with the sustained central bank assurance of proactive liquidity support and allay concerns of liquidity crunch, thereby accelerating growth.”

Samir Bhandari, Co-founder, CFO, hBits

“The RBI’s decision to cut the repo rate by 25 bps to 6.25 % for the first time in 5 years underscores its commitment to financial stability while balancing inflation and growth. This is particularly significant for commercial real estate investors, as it ensures access to capital at predictable costs, allowing for long-term strategic investments in premium assets. With inflationary pressures moderating and liquidity remaining steady, investor confidence in structured real estate investments, including fractional ownership, is expected to strengthen. At hBits, we see this as a positive shift, as more institutional and retail investors look for stable, inflation-hedged assets with strong rental yields. Given the global economic uncertainties, commercial real estate remains a resilient and income-generating asset class, and the RBI’s policy direction will play a key role in shaping future investment trends in this space.”

Viram Shah, Founder & CEO, Vested Finance

“RBI’s decision to cut rates is in line with expectations. The dovish stance follows most global major central banks that have also cut rates or have shown an indication to do so. The rate cut will likely further narrow the US-India bond yield spread which is already at a 20-year low, making the US bonds more attractive for foreign investors. This may lead to more outflows in coming months leading to investments in US bonds and stock markets. A weak rupee also makes a case for investing in US markets as investors will benefit from the strong dollar. At the time the Indian market has been struggling, investors should consider investing in global equities, especially US-listed, as they may not just provide alpha but also help diversify their portfolio. Domestic focused stocks in the US, such as utilities, steelmakers, etc. look attractive.”