Mayur Modi, Co-Founder, Moneyboxx Finance
With inflation remaining above the RBI comfort level, policy rate cut was out of question. While the economic recovery has kick-started, it is the rural economy which is the brightest of all the segments and in this context it heartening to note that RBI has now allowed RRBs to access LAF window. The move will immensely benefit the rural economy, which in turn will also boost the broader economy
Parag Munot, Managing Director, Kalpataru Limited
“RBI decision to keep policy rates un-changed is welcome and signals the government’s focus on fueling consumption. It is good news for homebuyers as home loan interest rates are expected to remain at current levels in the fiscal. Continuation of low rates, along with reduced stamp duty and various developer schemes will keep up the robust momentum. Importantly it will serve as the springboard for real estate growth in the next fiscal, as the economy recovers from pandemic’s impact.”
Anuj Puri, Chairman – ANAROCK Property Consultants
As was expected, the RBI has kept the repo rate unchanged. The threat of inflation looms large – it currently hovers above 7% – and the apex bank is tasked with reining it in while simultaneously fostering the green shoots of resuming consumption. On the positive side, an unchanged repo rate will ensure that home loan interest rates will not harden anytime soon. It is quite clear that increasing interest rates would impact overall demand at a time when the government is keen to boost consumption.
However, there is no denying that consumer inflation is at the upper end of the apex bank’s band, and the policy repo rate has already been substantially reduced by 140 basis points in 2020.
It goes without saying that the real estate industry’s perennial hope is fixed on lower interest rates. This would be enabled by reducing the repo rate – a least in theory, given that transmission of reduced repo rates to bank interest rates has been slow at best. With real estate demand gradually returning, especially in the wake of developers’ discounts and freebies and reduced stamp duty charges (in Maharashtra), reduced repo rates would have given an added boost to the ongoing festive season.