Im­pact Of Rbi’s REPO Rate cut ON home loans

The Mon­i­tor­ing Pol­icy Com­mit­tee of Re­serve Bank of In­dia slashed the repo rate by 25 bps to 6% at its third bi-monthly pol­icy re­viewlast month. Re­alty Plus presents the re­ac­tions of the real-estate sec­tor across the coun­try.

Realty Plus - - News -

PANKAJ ba­jaj, Pres­i­dent, credai NCR

“Given that the de­mand for hous­ing is weak at the mo­ment with the cur­rent home loan rate of around 8.5% per an­num, we hope that the banks will trans­mit the past and cur­rent rate cuts by RBI to bring the home loan rates to be­tween 7 and 7.5% per an­num. We think that that will be the in­flec­tion point for re­vival of de­mand”

Owais­us­mani, MD, Pres­i­dency in­fra­heights

“Un­til and un­less banks de­cide to pass on the ben­e­fits it would be dif­fi­cult to gauge the ef­fects of RBIS step, which came at a time when eco­nomic growth is slow. An­other as­pect is that right now

real-estate de­vel­op­ers are fo­cus­ing on RERA and GST com­pli­ance, projects are not be­ing launched and many projects are stuck. In such a sce­nario, it can be said that ef­fects will be vis­i­ble only af­ter some time”

Ro­htas goel, CMD, OMAXE ltd

“With the lat­est re­duc­tion, the repo rate now stands at 6%. As credit de­mand con­tin­ues to re­main weak, banks have am­ple liq­uid­ity and they should pass on the ben­e­fits of rate cut to com­mon peo­ple. A cou­ple of days ago, coun­try’s largest lender State Bank of In­dia re­duced sav­ings rate from 4% to 3.5%, sig­nalling that the in­ter­est rates of both lend­ing and de­posits are likely to fall fur­ther. The ex­pected re­duc­tion in in­ter­est rates will au­gur well for in­ter­est sen­si­tive sec­tor par­tic­u­larly in tier II cities like Chandigarh, Farid­abad, In­dore, Lucknow, Ludhiana etc.”

ar­jun­preet singh sahni, ex­ec­u­tive Di­rec­tor, soli­tairian GROUP

“With in­fla­tion at a five year low, it is along the ex­pected lines that RBI has an­nounced 25 bps rate cut in its third mone­tary pol­icy re­view for the cur­rent fis­cal year, how­ever, it will hardly have any pos­i­tive im­pact on the cur­rent luke­warm con­sumer de­mand sce­nario in real estate sec­tor. An ag­gres­sive cut in repo rate was the need of the hour.”

PANKAJ KU­MAR Jain, Di­rec­tor, KW GROUP

“We ex­pect the an­nounce­ment of 25 bps repo rate cut by RBI will trans­late into re­duc­tion in home loan rates im­me­di­ately. If the home

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