Bhoomika Singh
As predicted by economists, the Reserve Bank of India’s Monetary Policy Committee (MPC) did not change the repo rate from 6.50 per cent. Announcing the decision of the MPC after its three-day deliberations, RBI Governor Shaktikanta Das said on Friday that the committee unanimously decided to keep the repo rate at 6.5 per cent.
Das said taking into account the economic factors the MPC has predicted GDP growth at 6.5 per cent in FY24. As regards the inflation rate, the MPC forecast was 5.4 per cent for 2023-24 taking into account the various domestic issues including potential agricultural produce.
The real estate sector sounds happy and looking forward to RBI’s decision. This is how it reacts:
Reacting to the news, the Vice President at CREDAI-MCHI and Co-Founder & Director at Tridhaatu Realty, Pritam Chivukula says, “The RBI’s decision to keep the repo rate unchanged at 6.50 per cent has been in line with the government’s stance of keeping inflation in check while maintaining liquidity in the economy. The government has been supportive of the real estate sector with constructive industry policies. This pause in the repo rate has come at an apt time given the ongoing festive season which will improve market sentiments and drive housing demand even further. Construction activity has been buoyant on the back of timely government intervention and positive policy measures keeping the economy strong against global headwinds.”
Weighing in, Prashant Khandelwal, CEO at Agami, noted, “Maintaining status quo at 6.50 per cent has been a good decision taken by RBI. Given the ongoing festive season, this decision will encourage prospective home buyers to come forward and buy their desired home. As in the past, we look forward to continued support from the government with policies that will sustain the growth of the sector, going forward.”
Himanshu Jain, the VP of Sales, Marketing, and CRM at Satellite Developers Pvt. Ltd., expressed, “Given the current market conditions and the inflationary pressures, the RBI’s decision was anticipated to guide the economy towards stability and maintain a secure financial environment. Rising property prices had already added to the difficulties for potential homebuyers. Nevertheless, the RBI’s decision not to implement another repo rate increase has offered significant relief to individuals interested in buying homes. Moreover, those looking to make their first home purchase often view it as a substantial investment, and the RBI’s action is expected to have a favourable impact on their decision-making process.”
Speaking on the same, the Managing Director of Pushpam Group, Sachin Chopda told, “We appreciate the RBI’s choice to maintain the status quo on key interest rates in light of the escalating inflation. Over the past few years, there has been a notable surge in real estate investments, primarily due to its ability to offer investors better returns on their capital and its growing appeal as an asset class when compared to alternative investment opportunities. This decision is likely to inspire potential homebuyers to still close in on their property investments in the upcoming festive season.”
