Comments on RBI Monetary Policy - Aparna Constructions

 

The RBI’s decision to maintain its accommodative stance and keep the repo rate unchanged for the ninth consecutive time at four percent will provide much needed encouragement to the real estate sector. The status quo is a positive sign for the sector which has been witnessing signs of post-pandemic revival in the past two quarters. Leaving the reverse repo rate unchanged at 3.35 percent  will encourage more credit availability for developers to meet the resulting demand. A steady hand will ensure long-term stability as our economy recovers. Maintaining the status quo is especially critical during economic recovery as any increase in the interest rate would have adversely affected housing demand and derailed momentum. This continues to present a great opportunity for home buyers who can take advantage of attractive home loan rates. The move indicates that lending rates are not expected to increase from current levels for the foreseeable future. As a result, this is expected to bolster the home buying sentiment in the market. Overall, the continued accommodative stance combined with the recent stamp duty reductions are optimal to comprehensively lift market sentiments. The decision will have a positive impact on the real estate sector as the cost of financing for both developers and home buyers will not increase. We hope the RBI will continue to take positive steps to capitalise on the renewed growth of the sector and make it more enticing for home buyers.