The Reserve Bank of India’s (RBI) 6-member Monetary Policy Committee (MPC) has saved repo fee unchanged at 4 per cent. RBI Governor Shaktikanta Das made an announcement on this regard, which is gaining reward from the true property consultants. They are of the opinion that unchanged repo fee means house patrons would proceed to reap the advantages of a file low rate of interest regime. They went on so as to add that low house mortgage rate of interest would work nicely for house mortgage debtors as setting of affordability is predicted to proceed after this RBI’s choice.
Hailing RBI’s MPC choice to maintain key charges regular; Anuj Puri, Chairman at ANAROCK Group mentioned, “With Omicron throwing a shadow of doubt across the world and in India, the RBI has decided to keep the repo rates unchanged at 4 per cent and reverse repo rate at 3.35 per cent. This was expected, and is the ninth consecutive time that the RBI maintained status quo amid current uncertainties. The unchanged repo rates will help maintain status quo on the prevailing low interest rate regime for some more time. This works well for all home loan borrowers as the environment of affordability will continue.”
Echoing with ANAROCK professional’s views; Lindsay Bernard Rodrigues, CEO & Co-Founder, The Bennet and Bernard Company mentioned, “With the positive growth of the economy over the last few months, the RBI leaving the repo rate unchanged means home buyers would continue to reap the benefits of a record low interest rate regime. For any investor, it’s a time of great opportunity and for the end-customer. It’s a good time to buy. People are looking for own homes and are purchasing second homes in the context of the pandemic as they would have a secure and safe home and would also be a good alternative to their primary abode. The green shoots of economic revival coupled with the prevailing low interest rates will be conducive for the residential sector in the short to mid-term. Overall, we hope that the government continues to take measures that will strengthen the real estate sector and affirm robust infrastructure growth.”
Welcoming RBI choice to maintain repo fee regular; Gautam Thacker, President at NAREDCO — Neral-Karjat unit mentioned, “Keeping the repo rates unchanged augments the best decision during such times to keep the progress the economic growth. It also means the home loans will remain attractive and in-turn will keep up the momentum in real estate. In short, it’s a very positive decision for the Indian economy.”
Calling this RBI’s choice a possibility for brand spanking new house patrons; Pritam Chivukula, Secretary at CREDAI MCHI (Maharashtra Chamber of Housing Industry) mentioned, “We welcome the RBI’s decision to continue with their accommodative stance keeping in mind the economic uncertainty due to the new COVID-19 variant Omicron. The low interest rates have been a crucial factor in the revival of the demand in the real estate sector. The sector saw a good festive season on the back of rock-bottom interest rates on home loans along with festive offers from good developers. The buyers are already coming back to the market and we feel that this might be the last opportunity for the home buyers to purchase property with low interest rates before RBI decides to hike it in their next policy announcement. Also, to keep the prices down on the account of rise in raw materials prices will be a huge challenge in front of the developers.”
The RBI continued to keep up its ‘accommodative’ stance with 5 MPC members voting in favour of the identical. The repo fee, at which the RBI lends short-term funds to banks, has been left regular at 4 per cent whereas the reverse repo fee, at which the RBI borrows from banks, additionally stay unchanged at 3.35 per cent. The Marginal Standing Facility (MSF) & Bank Rate additionally remained unchanged at 4.25 per cent.
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