Mixed re­sponse to RBI’s sta­tus quo on repo rate

HT Estates - - HTESTATES - HT Es­tates Cor­re­spon­dent

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

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