RBI

India’s real estate sector is calling for an urgent reduction in the Reserve Bank of India’s (RBI) repo rate to reignite housing demand, which has begun to soften after several quarters of growth. Developers, financial experts, and housing associations believe that a policy rate cut would help lower borrowing costs, making home loans more affordable and stimulating sales, particularly in the mid-income and affordable housing segments.

In a candid address at HSBC's financial inclusion event, RBI Deputy Governor M Rajeshwar Rao highlighted persistent issues in India’s microfinance sector, including over-indebtedness, exorbitant interest rates, and harsh recovery practices. Despite the sector’s pivotal role in advancing financial inclusion, pockets of high margins and exploitative lending continue to exist, raising concerns about borrower well-being and sectoral stability. Rao underscored the need for regulated entities to adopt responsible lending practices, enhance credit assessments, and avoid coercive recovery methods.

The Indian rupee took a sharp hit on Monday, depreciating by 38 paise to settle at Rs 85.82 against the US dollar, marking its steepest decline in over five weeks. This downturn came amid global market turbulence, largely fueled by escalating trade tensions between the US and China. Despite a drop in crude oil prices and a weaker US dollar, the rupee's slide continued as foreign and domestic investors pulled out of equity markets.