IGI Logo

Below are Perspective on RBI Monetary Policy Announcement by Mr. Ram Raheja - Director, S Raheja Realty

‘’The decision to maintain the repo rate at 4% and reverse repo rate at 3.35% by the RBI is in line with expectations. RBI with its continued accommodative stance to maintain liquidity surplus in the market can be viewed as being pragmatic. This status quo will further allow demand creation including for high involvement products like real estate. The real estate sector is expected to continue benefiting from the pass-through of low benchmark lending rates to end consumers, especially in the residential segment. Homebuyers will continue to take advantage of the lowest ever home loan interest rates and with the emerging need, the demand for housing is going to sustain as it is a safe-haven asset. With improved GDP growth estimated in the near future, we expect that the real estate sector will contribute a substantial share to overall economic development. ’’

Above views are of the author and not of the website kindly read disclaimer