The much-awaited rate cut has finally arrived, easing interest rate pressure on the industry as a whole and providing relief to home loan borrowers. However, liquidity has turned negative, which remains a cause for concern. The RBI is closely monitoring the situation and implementing measures to mitigate the risk. Inflation has moderated, and the RBI expects it to average 4.2% next year, creating further room for additional rate cuts. Key factors to watch include geopolitical developments, Rabi and Kharif crop yields, GDP growth, and inflation trends.
Kishore Lodha, Chief Financial Officer, UGRO Capital
