Quote on Monetary Policy from Real estate players

The first bimonthly RBI Policy announcement of FY2017-18 by RBI Governor Mr.Urjit Patel and the third after demonetization of old currency, keeping the repo rate unchanged at 6.25% was an expected move but the real estate sector needs more, said, Mr.Ashwin Sheth, CMD, Sheth Corp Ltd.

“Although the rate was kept on hold citing risks to inflation from monsoon and GST, but a rate cut at this stage would have helped in lowering the home loan interest rates further after the Maharashtra Government hiking the ready reckoner rates by close to four per cent last week.

This could have made home buying a reality for most buyers who have been eagerly waiting for the rates to cut down. Since demonetisation, banks were flooded with excess liquidity due to a huge surge in deposits by cash holders. However the hike in the reverse repo rate would help to squeeze the excess liquidity and will help bring stability in property prices”, continued Mr. Sheth.

Quote from Mr Navin Makhija, Managing Director, The Wadhwa Group, said, “The RBI has once again shown uniformity by maintaining status quo with the key lending rate remaining unchanged at 6.25% in its first bi-monthly policy of the fiscal year 2017-18. We expected some reform in the policy. Nonetheless, we support this decision and will adopt a wait and watch approach for now. We hope the RBI takes measures to cut interest rates in the near future to complement the initiatives taken by the Government to ensure stabilisation of the Real Estate Market.”