Quote on the RBI MPC Announcement by Mr. Kaushal Agarwal, Chairman at The Guardians Real Estate Advisory
Below the Quote on the RBI MPC Announcement by Mr. Kaushal Agarwal, Chairman at The Guardians Real Estate Advisory
"The RBI’s decision to cut the repo rate by 25 basis points to 6% comes as a welcome move for the real estate sector. A lower interest rate environment generally improves home loan affordability, which is likely to boost buyer sentiment especially in a price-sensitive market like Mumbai. We had already seen a positive response during the last cut from 6.50% to 6.25%, and with the current reduction to 6%, we expect this trend to continue. Developers and buyers alike will benefit from the improved credit environment, and we anticipate stronger traction in mid-income and first-time homebuyer segments over the next two quarters. Alongside this, the standing deposit facility (SDF) rate has been revised to 5.75%, while the marginal standing facility (MSF) rate and the Bank Rate now stand at 6.25%, further supporting overall liquidity in the system and encouraging lending activity.
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