RBI Monetary Policy Repo Rate: Here is what builders want Shaktikanta Das to do
RBI Monetary Policy: Lower RBI Repo Rate will further impact home loan interest rates resulting in reduced EMIs that will improve the home loan off-take impacting home sales.
RBI Monetary Policy: To reduce the EMI burden on the home buyers and enhance their purchasing power capacity — a required fillip that can boost the real estate sector, Indian realtors want RBI Governor Shaktikanta Das to slash the Repo Rate by up to as much as 50 bps in today's RBI Monetary Policy review meeting. They said the RBI can do this in today's meet in view of both low inflation and slowing industrial production.
Niranjan Hiranandani, President, NAREDCO (National Real Estate Development Council) told Zee Business online, "The RBI is expected to cut its key lending rate by another 25 basis points (bps) in view of both low inflation and slowing industrial production. Though I would suggest a 50 bps cut, with the proposed rate, it will support the growth and allow liquidity in the economy. This will further impact home loan interest rates resulting in reduced EMIs that will improve the home loan off-take impacting home sales. As the festive season is approaching, it will harbor positive sentiments among home buyers grabbing new residential buying opportunities in new launches." Hiranandani added that an easing in liquidity will fuel India's growth engine and while RBI's initiatives have already eased out the burden of liquidity-hit sectors like NBFC, housing, auto and SMEs to some extent, the real estate sector is looking forward to more such path-breaking initiatives in future, as well.
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Demanding the required fillip to the real estate sector by the government, Gaurav Kashyap, CEO, Carry Hill Interiors said, “The real estate sector is eagerly waiting for this much-needed push and this expected rate cut will give the required fillip to the sector. As a result of this reduction, banks may pass on the benefits of the revised rates to the end consumer of loans, thereby impacting positively the purchase decision of the prospective buyers including boost in the Capex sentiments of the MSMEs and corporate.”
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