Reserve Bank of India (RBI) has kept the key rates unchanged at his last monetary policy review meet, so there is no reason for the home buyers to cheer. This is done citing inflationary pressures, which means it will now only be on banks and loan companies to reduce the home loan rates. RBI decided to maintain status quo on policy rate at 6.5 per cent in its bimonthly policy review.
“Considering that the country has been blessed with good monsoon this year, we were anticipating that the RBI would take a more balanced and futuristic view in consideration and definitely grant a cut as far as interest rates were concerned. Unfortunately, we have been disappointed again. Having said that, the 150 bsp reduction in the repo rate that was granted until now has not really been passed down to the end user in form of either retail loans, home loans or any other loans. This needs to be taken up by the banks and lending institutions immediately. If the economy has to grow in double digits, real estate will need to be supported by a low interest regime, as is the norm across the world. Having seen inflation controlled at 5 per cent, there is no reason for such a high interest regime. However, we have always been optimistic that the RBI in its wisdom, in the coming months will announce a rate cut so that the dream of a home for every Indian can be realised at a reasonable cost”, said Getamber Anand, President, CREDAI National.
Also, Shishir Baijal, Chairman & Managing Director, Knight Frank India, has shared, “The residential property market has not been doing well and there was an expectation that RBI would reduce the policy rates, which would give a boost to the residential property market.”