In a continuation of its previous policy stand, the RBI has decided to keep the repo rate unchanged at 6.5% in its bi-monthly MPC meeting held today. The decision was in alignment with the real estate industry’s expectations and drew fairly positive responses from realty barons and doyens. Among the important announcements, the RBI also reiterated the FY24 GDP growth forecast at 6.5%. The top financial institution predicted FY24 CPI inflation to be at 5.1%.
Commenting on the RBI’s monetary policy stand, Vikas Garg, Joint Managing Director, Ganga Realty, said, “The decision to keep the repo rate unchanged is along the expected lines. The inflation rates have plummeted and demand for housing and commercial realty segments continues to rove in an upward growth trajectory. We welcome the RBI’s monetary policy on repo rates as they have factored in the economic scenario, variables, and possibilities and taken a praiseworthy decision. It will churn out good results for the real estate sector.”
The RBI has maintained the status quo of the repo rates by reaffirming its stance of “withdrawal of accommodation”. Following a series of six consecutive hikes, the central bank has adopted a flip-flop in its policy stance taking into account the tamped-down inflation rates.
Talking about his reaction, Saransh Trehan, Managing Director, Trehan Group, said, “Maintaining the status quo of repo rates will also play an important role in holding the home loan mortgage rates. The residential real estate demand has been rising with record-breaking home sales, especially in the National Capital Region. The decision will help in keeping the property demand buoyant and also motivate new homebuyers to invest in real estate markets. We hope that the decision helps in consolidating the Indian economy, lowering inflation rates, and achieving the FY24 GDP growth forecast of 6.5%.”
Most experts are of the opinion that RBI is most likely to stick to its stance until there is an upswing in inflation rates until there is an upswing in inflation rates. The real estate experts have also commented that they are hoping for a rate reduction in the next review meeting to bolster consumer demand.
