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Below is Perspective on RBI Monetary Policy 08 December 2021 By Mr. Ram Raheja - Director, S Raheja Realty

"The decision to maintain the same repo rate and reverse repo rate by the RBI is in line with expectations which will act as a catalyst for economic growth. The MPC meeting took place at a time when the country is coping with high inflation, despite the fact that the rate has declined from its peak in June 2021, when it was above 6%. However, the economy grew at a record pace of 20.1 per cent in the April-June quarter compared to the same period last year, when a nationwide lockdown caused by the Covid-19 outbreak had halted almost all economic operations. The pandemic and lockdown was a silver lining for the real estate sector given it is a safe-haven and tangible asset at the time of crisis. This led to increased investment and home-buying in the last two years. A low home loan interest rate regime has been greatly instrumental in further stimulating India’s real estate sector, especially during the festive season. The sentiment for the real estate sector therefore remains positive and the same is also reflected in the S&P BSE realty index as it continues upward movement.”

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