The second bimonthly RBI Policy announcement of FY2017-18 by RBI Governor Mr. Urjit Patel keeping the repo rate unchanged at 6.25% was an expected move, as RBI was expecting clarity on monsoon and impact of GST rollout, said Mr. Ashwin Sheth, CMD, Sheth Corp Ltd.
“Although SLR was cut by 50 basis points to 20%, it will certainly instill more liquidity into the banking system which will indirectly help banks to lend more money. Housing loans possibly will get cheaper as provisioning requirements get reduced. However many banks have already cut down their interest rates which is a positive sign for the home buyers.
Also now with the implementation of RERA Act, we can expect to witness positive reforms and sales growth in the sector. It will make real estate deals more transparent and fair to the buyers increasing their confidence”, continued Mr. Sheth.