For anyone who has sat across a bank desk and watched an EMI being calculated, interest rates have never felt abstract.
A quarter-point can change the conversation. So can a few hundred rupees in the monthly budget.
That is how rate cuts are usually felt. Not in policy statements. In household arithmetic.
India saw plenty of that arithmetic change in 2025.
The RBI cut the repo rate four times. It fell from 6.50% to 5.25%.
Borrowing became cheaper. Credit demand picked up. Home-loan EMIs came down.
For a while, it looked like the start of a longer easing cycle.
But rate cycles rarely announce their turning points.
Sometimes, the first signs appear elsewhere. In food prices. In crude oil. In credit demand. Or in the bond market.
That is where India finds itself today.
The RBI has not raised rates. The repo rate remains at 5.25%.
Read on: https://www.kotakneo.com/investing-guide/insights/indias-rate-cycle-may-be-turning-before-rates-do/?utm_source=social&utm_medium=tg&utm_campaign=kotak-insights
A quarter-point can change the conversation. So can a few hundred rupees in the monthly budget.
That is how rate cuts are usually felt. Not in policy statements. In household arithmetic.
India saw plenty of that arithmetic change in 2025.
The RBI cut the repo rate four times. It fell from 6.50% to 5.25%.
Borrowing became cheaper. Credit demand picked up. Home-loan EMIs came down.
For a while, it looked like the start of a longer easing cycle.
But rate cycles rarely announce their turning points.
Sometimes, the first signs appear elsewhere. In food prices. In crude oil. In credit demand. Or in the bond market.
That is where India finds itself today.
The RBI has not raised rates. The repo rate remains at 5.25%.
Read on: https://www.kotakneo.com/investing-guide/insights/indias-rate-cycle-may-be-turning-before-rates-do/?utm_source=social&utm_medium=tg&utm_campaign=kotak-insights