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Below is Perspective on today's RBI Monetary Policy by Mr. Shishir Baijal, Chairman & Managing Director, Knight Frank India.

“We welcome the RBI’s unchanged view on the ‘accommodative’ stance and commitment to maintaining the liquidity in the economy. Despite the inflationary pressures, RBI maintaining status quo on key policy interest rates and continuing with growth supportive policy stance was need of the hour. Extended period of historic low interest rates would ensure home loan rates remain at current benign levels and aid the revival of real estate sector. We have also seen many real estate developers refinancing their borrowings at lower interest cost and benefit from the lower interest rate regime, which is crucial at this juncture when business operations are facing the pandemic pressure.

In addition to this monetary policy intervention, the time is ripe for the RBI and Government to undertake more valiant demand stimulant measures to help the economy to cross FY20 GDP levels and ensure a broad-based revival. The lower interest rate environment and demand stimulant measures from Government coupled with the on-going vaccinations is likely to encourage businesses and consumers to avail credit to expand their business or fulfill consumption requirements, thereby stimulating the economy.”

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