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Below Reaction on RBI Policy By Vimal Nadar, Head of Research at Colliers India

In one of the most keenly followed MPC meetings in recent times, RBI has continued to maintain status quo on benchmark lending rates. While the economic growth trajectory of India remains intact, food inflation and the consequential impact on consumer inflation remains a monitorable. The Central bank has factored in an inflation expectancy of 5.4% for FY 2023-24 in the GDP growth projection of 6.5% for the ongoing fiscal year. Notwithstanding spiralling effect of volatile global economic scenario, strong inherent fundamentals of domestic economy will continue to allay the urgency for rate cuts in near future.

RBI’s decision to keep the repo rate steady at 6.5% since February this year will continue to bring in respite for EMI dependent homebuyers. Stability in financing costs will also stand to benefit the balance sheet of real estate developers. Real estate construction activity remains buoyant and is reflected in healthy steel consumption and cement production. Stable interest rates, favourable pricing & availability of relevant supply will augur well with first time homebuyers especially in the affordable & mid segments in the upcoming festive season.

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