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By:

Bhalchandra Chorghade

11 August 2025 at 1:54:18 pm

RBI Holds Repo Rate at 5.25 pc

RBI policy stability boosts real estate sentiment Mumbai: The Reserve Bank of India’s (RBI) decision to keep the repo rate unchanged at 5.25% has been widely welcomed by stakeholders across the real estate sector, who view the move as a stabilising factor at a time when India’s growth outlook has strengthened following the Union Budget’s emphasis on infrastructure spending and improving external trade prospects. Industry leaders believe that policy continuity will help sustain housing demand,...

RBI Holds Repo Rate at 5.25 pc

RBI policy stability boosts real estate sentiment Mumbai: The Reserve Bank of India’s (RBI) decision to keep the repo rate unchanged at 5.25% has been widely welcomed by stakeholders across the real estate sector, who view the move as a stabilising factor at a time when India’s growth outlook has strengthened following the Union Budget’s emphasis on infrastructure spending and improving external trade prospects. Industry leaders believe that policy continuity will help sustain housing demand, reinforce investment sentiment and provide greater visibility on borrowing costs, even as inflationary pressures remain under close watch. The central bank’s steady stance comes against the backdrop of accelerating infrastructure-led development and expectations of stronger economic growth. Developers and consultants said the unchanged rate environment is likely to support project execution, maintain consumer confidence and enhance predictability in financing decisions across residential and commercial segments. Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India, said, “The RBI’s decision to hold rates steady, reflects a cautious and stability focused stance in a volatile global environment. As the economic growth outlook remains stable and maintain momentum, we can expect this overall growth to have a positive impact on the real estate sector. The pause underscores the central bank’s priority on managing currency pressures and external risks.” He added that while further rate cuts could have provided an additional boost to homebuyer sentiment, particularly in affordable housing, banks are expected to pass on more of the existing rate benefits to consumers. He also welcomed the easing of lending norms for REITs, stating, “RBI’s decision to permit bank lending to REITs is a welcome step for the sector’s evolving funding ecosystem… The move reinforces regulatory confidence in listed real estate vehicles and should strengthen liquidity and depth in India’s real estate investment market.” Echoing similar sentiments, Prashant Sharma, President, NAREDCO Maharashtra, said, “The RBI’s decision to maintain the repo rate at 5.25% provides much-needed stability to the real estate sector at a time when growth expectations have strengthened following the Union Budget’s thrust on higher government spending and improving external trade prospects after recent trade agreements.” He added that policy continuity would help sustain housing demand and enable developers to plan investments with greater confidence. Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory, said, “The RBI’s status quo on interest rates comes at an opportune time, as the Union Budget’s increased government spending and improving trade outlook have lifted expectations of faster economic growth.” According to him, stable interest rates will play a crucial role in sustaining homebuyer sentiment and investment activity, reinforcing real estate’s appeal as a long-term asset class. Kamlesh Thakur, Co-Founder and Managing Director, Srishti Group, noted, “The RBI’s decision to maintain status quo on interest rates reflects a well-calibrated approach to balancing inflation control with economic momentum.” He added that stable financing costs and an improved GDP outlook are encouraging for urban housing demand, particularly in infrastructure-driven corridors. Shilpin Tater, Managing Director, Superb Realty, said, “The RBI’s neutral stance and steady repo rate of 5.25% reinforce confidence across the real estate ecosystem,” adding that continued government-led capital expenditure is expected to keep demand for quality commercial and residential assets resilient. Shraddha Kedia-Agarwal, Director, Transcon Developers, said, “The decision to maintain status quo on policy rates is reassuring for both homebuyers and developers,” noting that stable borrowing costs and an improved growth outlook would help sustain residential demand, particularly in metropolitan markets. Dhruman Shah, Promoter, Ariha Group, observed, “The RBI’s decision to keep the repo rate unchanged at 5.25% reflects confidence in the Indian economy’s underlying strength and a pragmatic approach to sustaining growth,” highlighting sustained buyer confidence and healthy sales momentum in urban markets. Nihar Jayesh Thakkar, Founder, The Mandate House Pvt. Ltd., added, “The RBI’s steady policy stance underscores a careful calibration between growth support and inflation management,” stating that improved macro visibility and infrastructure spending are likely to boost commercial and investment-driven real estate transactions over the medium term. Industry stakeholders believe that while inflation risks remain a key monitorable factor for policymakers, the current policy continuity provides a stable platform for sustained growth in India’s real estate sector, supported by infrastructure expansion, fiscal stimulus and improving economic fundamentals. “RBI’s decision to permit bank lending to REITs is a welcome step for the sector’s evolving funding ecosystem. Indian REITs, with approximately USD 27 bn of AUM across office and retail segments, have historically relied on capital market issuances and sponsor-backed financing, and access to bank credit will serve as an additional funding avenue that diversifies the liability stack and enhances refinancing flexibility. The move reinforces regulatory confidence in listed real estate vehicles and should strengthen liquidity and depth in India’s real estate investment market.” Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India

Gun Violence in America

Updated: Jan 2, 2025

Gun Violence in America

On December 16, 2024, tragedy struck Abundant Life Christian School in Madison, Wisconsin, where a 15-year-old student, Natalie Rupnow, fatally shot a fellow student and a teacher before taking her own life. Six others were injured, with two in critical condition. This devastating event is a grim reminder of the United States' ongoing struggle with gun violence, particularly in schools.


A Long History of Gun Ownership in America

The issue of gun violence in the United States cannot be discussed without acknowledging its deep-rooted history of gun ownership. The right to bear arms is enshrined in the Second Amendment of the U.S. Constitution, adopted in 1791, which states: “A well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed.”


Initially, this amendment was intended to empower citizens to form militias for self-defense during a time when standing armies were distrusted. Over the centuries, however, the interpretation of the Second Amendment has evolved. Today, it is often cited as a justification for individual gun ownership, a concept reinforced by landmark court cases such as District of Columbia v. Heller (2008), which affirmed an individual's right to own firearms for self-defense.


Gun culture is deeply ingrained in American society, with nearly 400 million firearms in civilian hands—more guns than people. This level of accessibility, coupled with a powerful gun lobby led by organizations like the National Rifle Association (NRA), has made significant legislative reform difficult.


Gun Violence in Numbers

According to the Centers for Disease Control and Prevention (CDC), firearms cause approximately 40,000 deaths annually in the United States—equivalent to 109 deaths per day. This figure includes homicides, suicides, and accidental shootings. Among children and teenagers, firearms are now the leading cause of death, surpassing motor vehicle accidents.


School shootings are a particularly horrifying aspect of gun violence in America. Since 1990, there have been over 800 incidents in K-12 schools, resulting in more than 500 deaths and over 1,000 injuries. High-profile tragedies such as the Columbine High School massacre (1999), the Sandy Hook Elementary School shooting (2012), and the Marjory Stoneman Douglas High School attack (2018) have shocked the nation and the world, yet meaningful reforms remain elusive.


A Global Comparison

The United States stands out among developed nations for its high rate of gun violence. In countries like Australia, Canada, and much of Europe, strict gun control measures have significantly reduced firearm-related deaths. For example: By contrast, the firearm-related death rate in the United States is 12.2 per 100,000 people, significantly higher than other developed nations. The prevalence of guns and the lack of uniform gun control laws contribute to this disparity.


Challenges in Addressing Gun Violence

Efforts to reduce gun violence in the U.S. have faced significant obstacles. One of the most notable is the prohibition of federal funding for gun violence research. In 1996, Congress passed the Dickey Amendment, effectively barring the CDC from studying gun violence as a public health issue. Although the funding ban was partially lifted in 2019, its legacy has left the country with a limited understanding of the causes and solutions to gun violence.


Advocates have long called for measures such as:

• Universal Background Checks: Closing loopholes in gun sales to ensure that all firearm purchases are subject to background checks.

• Safe Storage Laws: Requiring gun owners to store firearms securely to prevent unauthorized access.

• Bans on Certain Firearms: Prohibiting the sale of assault-style weapons, which are often used in mass shootings.


The Debate Over Gun Rights and Reform

The debate over gun control in the United States often pits the rights of gun owners against the need for public safety. Opponents of stricter gun laws argue that restrictions infringe on constitutional rights and fail to address the root causes of violence, such as mental health issues. Proponents, however, point to the success of gun control measures in other countries and the overwhelming public support for policies like background checks.


A Way Forward

Despite the challenges, there is growing momentum for change. Grassroots organizations, survivors of gun violence, and some lawmakers are advocating for comprehensive reforms. The Madison school shooting serves as a stark reminder of the urgency of these efforts. As the nation grapples with its gun violence epidemic, it must look to both its history and the experiences of other countries to find a path toward a safer future.


(The author is a resident of US. Views personal.)

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