The RBI - Reserve Bank of India Governor Shaktikanta Das declared the MPC – Monetary Policy Committee decisions.
The central bank of India left its standard interest rate unmoved. As expected, the banking regulator keeping its center focus on inflation among policy uncertainty next to the unanticipated election result.
Das further stated, the dedicated monetary policy committee that consists of three RBI and an equivalent number of external associates kept the repo rate unmoved at 6.50 percent for an 8th straight policy conference & held to its comparatively combative stance of "withdrawal of accommodation”.
Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd: The RBI held rates steady for the eighth time in a row, likely due to high food inflation despite overall CPI falling within their target range. Strong GDP growth in FY24 may have also influenced this decision. However, economists anticipate rate cuts of 25-50 basis points in the second half of the fiscal year if inflation keeps declining. Lower interest rates could further boost the real estate sector, which is already experiencing strong market demand from end-users. We expect the robust demand trend to stay healthy over the next few years, particularly in cities like Gurugram which are witnessing robust infrastructure development.
Mohit Jain, Managing Director, Krisumi Corporation: The demand for homes remains stronger, especially in the luxury and high-end segments. The RBI status quo on the policy front is expected to keep the momentum going. However, with potential rate cuts on the horizon, the entire real estate market could see an additional boost as and when it materializes. The mid and premium housing segments will be the biggest beneficiary of any future rate cut.
Samir Jasuja, CEO and MD of PropEquity (India’s largest real-estate data and analytics company: The decision of RBI is on the expected lines. With overall inflation falling within the RBI range, a policy rate cut may not be very far away. Real estate prices have gone up substantially and a future rate cut will give much higher purchasing power to the customer which is the need of the hour. Such a move would be a welcome news for homebuyers across cities including metro cities as well as tier II and III cities.
Aman Sarin, Director & Chief Executive Officer, Anant Raj Limited: We welcome the RBIs move to keep the repo rate unchanged. For the eighth consecutive time the RBI has decided to keep the repo rate unchanged at 6.5%. The RBI's decision to maintain the status quo on the policy rate is driven by inflation, which remains at a comfortable level of 4%. This will keep the Liquidity and the Cost of Borrowings at static level, thus, helps to keep the cost under control. Real estate Sector will benefit due to static cost of borrowings and price stability and will result in better Profitability in long run from ongoing Projects.
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