KOLKATA: The policy rate has been maintained status quo at 6.5 per cent by the Reserve Bank of India (RBI), which is in line with expectations, while growth has been raised to 7.2 per cent from 7 per cent for fiscal year 2024-25, experts said. Say said on Friday.
Realtors said the decision to keep the repo rate unchanged in the latest monetary policy review is expected to have a stabilizing impact on the real estate sector.
The Monetary Policy Committee, comprising three RBI and equal number of external members, kept the repo rate unchanged at 6.50 per cent for the eighth consecutive policy meeting and the Reserve Bank of India stuck to its relatively accommodative stance of "withdrawal". The European Central Bank's recent move to cut rates by 25 basis points and indications of an imminent Fed rate cut are also key indicators of how the RBI may look at its interest rate regime, Governor Shaktikanta Das said in his statement. Although domestic factors will still have a greater impact on this. Samantak Das, chief economist and research at JLL and head of REIS, India, said the pace and timing of future rate cuts.
“With controlled inflation paving the way for future rate cuts, 2024 promises to increase affordability levels within the residential real estate sector, second only to the peak levels of 2021.With demand expected to surge, especially in the mid-tier and higher-income segments, the Indian housing market is set to witness skyrocketing growth with residential sales in the top seven markets of India reaching a historic high by 2023. But a 15-20 per cent increase is predicted,” the official said.
Equirus economist Anita Rangan said the apex bank in its second monetary policy for the current financial year kept the policy rate as expected at 6.5 per cent and revised the growth rate to 7.2 per cent, while keeping inflation at 4.5 per cent throughout. The percentage has been kept unchanged. Fiscal". "Overall, the main reason for keeping the policy rate unchanged is uncertainty over the outlook for domestic inflation led by the food basket," the economist said.
Rangan said that RBI said that core inflation is encouraging, but food inflation is playing spoilsport, which requires vigilance."Besides, the crude oil outlook remains uncertain. The growth revision only reiterates that the RBI is willing to wait and watch before changing its stance on policy rates," Rangan said. Dharamkirti Joshi, chief economist at CRISIL. Said that RBI has given priority to keeping the policy rate unchanged by not changing it. "The RBI will have to rein in consumer price-based (CPI) inflation to maintain its stated target of around 4 per cent."
Joshi said, “Food inflation remains a cause for concern.RBI has kept the inflation forecast unchanged at 4.5 percent. It is also optimistic about growth, with GDP revised up by 20 basis points."
“Now we see the RBI cutting rates from October,” he said. Sushil Mohta, chairman of real estate body CREDAI West Bengal and president of Merlin Group, welcomed the RBI monetary policy announcement as the unchanged repo rate. This means there will be no immediate impact on real estate or home loan EMIs.
“This will maintain the momentum in the residential real estate sector.Moreover, the RBI has kept the inflation forecast unchanged at 4.5 per cent for this financial year and is optimistic about growth. I expect repo rates to come down as growth in the US remains strong," he said.
Furthermore, a stable repo rate will support the commercial real estate sector by ensuring stable borrowing costs, enhancing investor confidence and allowing long-term investment planning, he said. These factors, he said, will contribute to growth and stability in the commercial real estate market. Will help in creating a favorable environment.“The better-than-expected growth has given the RBI the flexibility to keep the repo rate unchanged at 6.5 for the eighth consecutive time, indicating a prudent and measured approach to ensuring that inflation remains in line with the target sustainably and permanently. This strategic move ensures a stable and predictable interest rate environment, a game-changer for both home buyers and developers,” Das said.
Nahar Group Vice Chairperson Manju Yagnik said stability supports the real estate market, making housing more affordable and increasing consumer confidence. This, she said, enables informed investment decisions, boosting the growth of the sector. and the financial environment encourages long-term investment in housing.
Dharmendra Raichura, VP and finance head, Usher Group, said although the unchanged rate is industry-agnostic, the real estate sector expects lower interest rates later this year, which could boost housing demand across industries and regional growth. Is.
Realtors said the decision to keep the repo rate unchanged in the latest monetary policy review is expected to have a stabilizing impact on the real estate sector.
The Monetary Policy Committee, comprising three RBI and equal number of external members, kept the repo rate unchanged at 6.50 per cent for the eighth consecutive policy meeting and the Reserve Bank of India stuck to its relatively accommodative stance of "withdrawal". The European Central Bank's recent move to cut rates by 25 basis points and indications of an imminent Fed rate cut are also key indicators of how the RBI may look at its interest rate regime, Governor Shaktikanta Das said in his statement. Although domestic factors will still have a greater impact on this. Samantak Das, chief economist and research at JLL and head of REIS, India, said the pace and timing of future rate cuts.
“With controlled inflation paving the way for future rate cuts, 2024 promises to increase affordability levels within the residential real estate sector, second only to the peak levels of 2021.With demand expected to surge, especially in the mid-tier and higher-income segments, the Indian housing market is set to witness skyrocketing growth with residential sales in the top seven markets of India reaching a historic high by 2023. But a 15-20 per cent increase is predicted,” the official said.
Equirus economist Anita Rangan said the apex bank in its second monetary policy for the current financial year kept the policy rate as expected at 6.5 per cent and revised the growth rate to 7.2 per cent, while keeping inflation at 4.5 per cent throughout. The percentage has been kept unchanged. Fiscal". "Overall, the main reason for keeping the policy rate unchanged is uncertainty over the outlook for domestic inflation led by the food basket," the economist said.
Rangan said that RBI said that core inflation is encouraging, but food inflation is playing spoilsport, which requires vigilance."Besides, the crude oil outlook remains uncertain. The growth revision only reiterates that the RBI is willing to wait and watch before changing its stance on policy rates," Rangan said. Dharamkirti Joshi, chief economist at CRISIL. Said that RBI has given priority to keeping the policy rate unchanged by not changing it. "The RBI will have to rein in consumer price-based (CPI) inflation to maintain its stated target of around 4 per cent."
Joshi said, “Food inflation remains a cause for concern.RBI has kept the inflation forecast unchanged at 4.5 percent. It is also optimistic about growth, with GDP revised up by 20 basis points."
“Now we see the RBI cutting rates from October,” he said. Sushil Mohta, chairman of real estate body CREDAI West Bengal and president of Merlin Group, welcomed the RBI monetary policy announcement as the unchanged repo rate. This means there will be no immediate impact on real estate or home loan EMIs.
“This will maintain the momentum in the residential real estate sector.Moreover, the RBI has kept the inflation forecast unchanged at 4.5 per cent for this financial year and is optimistic about growth. I expect repo rates to come down as growth in the US remains strong," he said.
Furthermore, a stable repo rate will support the commercial real estate sector by ensuring stable borrowing costs, enhancing investor confidence and allowing long-term investment planning, he said. These factors, he said, will contribute to growth and stability in the commercial real estate market. Will help in creating a favorable environment.“The better-than-expected growth has given the RBI the flexibility to keep the repo rate unchanged at 6.5 for the eighth consecutive time, indicating a prudent and measured approach to ensuring that inflation remains in line with the target sustainably and permanently. This strategic move ensures a stable and predictable interest rate environment, a game-changer for both home buyers and developers,” Das said.
Nahar Group Vice Chairperson Manju Yagnik said stability supports the real estate market, making housing more affordable and increasing consumer confidence. This, she said, enables informed investment decisions, boosting the growth of the sector. and the financial environment encourages long-term investment in housing.
Dharmendra Raichura, VP and finance head, Usher Group, said although the unchanged rate is industry-agnostic, the real estate sector expects lower interest rates later this year, which could boost housing demand across industries and regional growth. Is.
