Mixed response to RBI’s status quo on repo rate
In a recent monetary policy review, the Reserve Bank of India has kept the repo rate unchanged at 6.75%. The cash reserve ration ( CRR) – the amount of deposits banks keep with the RBI – has also been left unchanged at 4%.
The real estate sector has given a mixed response. While a section of realtors are of the view that a rate cut would have helped in improving market sentiments in stagnant market conditions, others say that the RBI’s stand was in line with the expectation as the regulator has already cut a total of 125 bps and now much depends on how banks transmit the benefit to homebuyers.
According to Shishir Baijal, chairman and managing director, Knight Frank India, “The stand is in sync with the developments in the macro economic scenario wherein GDP growth has risen to 7.4% in the July-September quarter from 7% in the earlier quarter and with around 30% contribution