RBI MPC Announcement : We welcome Reserve Bank of India`s (RBI) decision to continue the pause in REPO RATE for the fourth consecutive time says Mr. Shishir Baijal, Knight Frank India
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Below the Quote on RBI MPC Announcement by Mr. Shishir Baijal Chairman & Managing Director, Knight Frank India
“We welcome Reserve Bank of India’s (RBI) decision to continue the pause in REPO RATE for the fourth consecutive time. Continuation of pause in the Repo rate was much needed albeit looming inflationary pressure arising from – rising crude prices and rupee depreciation. By pausing the policy rate, the central bank continues to maintain its focus on economic growth, which is facing headwinds primarily from the external factors, such as slowdown in global growth, high energy prices and geopolitical tensions; and remains cautious of inflationary pressure as well.
Measures to reduce excess liquidity and improve transmission of earlier policy rate hike measures align with price stability goals of the central bank. The decision will continue to maintain the existing momentum of residential real estate demand in India. Since the interest rate upcycle, the repo rate has been hiked by 250bps, resulting in 160bps rise in home loan rates. Since then, although the overall housing demand has remained upbeat, the lower housing segment or the affordable housing demand has witnessed a deceleration due to a substantial rise in the borrowing costs and other challenges. The stance today should be considered as a big relief for the housing sector of the country which has shown tremendous strength in the face of headwinds over the last year”
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