Mumbai, August 2, 2017: The third bimonthly RBI Policy announcement of FY2017-18 by RBI Governor Mr.Urjit Patel cutting the repo rate by 25 bps at 6% is a welcome move, said Mr.Ashwin Sheth, CMD, Sheth Corp Ltd.
“Although the RBI has maintained its neutral stance, the indication towards easing of policy rates and the upcoming festive season will renew further interest in the real estate sector,” added Mr. Sheth.
“The reduction in the repo rates will help in bringing down the home loan interest rates which in turn is likely to bring in some amount of relief to the homebuyers. But, the banks will also have to pass down the benefit to the homebuyers to encourage the prospective buyers to move a step closer to purchase their dream home. Interest rate is one of the important factors as the equated monthly installments (EMI) is directly linked to it. Therefore, if the banks pass on the benefits and the EMIs fall, we feel the demand for the housing should witness momentum as far as buying new properties are concerned,” concluded Mr. Sheth.