Reserve Bank of India (RBI) Today decided to keep the repo rate at 6.5% for the 11th consecutive time. However, RBI has definitely reduced CRR by 0.50%. RBI has reduced the Cash Reserve Ratio (CRR) from 4.5 percent to 4 percent. This will increase liquidity in the market and banks will have more money to give loans. This will lead to easy availability of loans in the market, which is good news for the property market. Let us tell you that this time many experts were expecting that RBI might give the gift of cheap loans if the GDP growth slows down but it did not happen. In view of the skyrocketing inflation, RBI did not decide to cut the repo rate. Let us know what the realty giants have to say on not cutting the repo rate.
Liquidity will increase in Indian market
National President of NAREDCO, G Hari Babu The decision by the Reserve Bank of India to maintain the repo rate at 6.5% and reduce the CRR by 50 basis points to 4% is a balanced approach to maintaining economic stability while promoting liquidity, it said. This move is in line with the growth of the real estate sector. He said the reduction in CRR is a welcome step, as it will create additional liquidity in the banking system, giving greater flexibility to financial institutions to provide loans at competitive rates. With this, home buyers will get easy loans which will increase the demand for property.
Will benefit from reduction in CRR
Rakesh Yadav, CMD of Space India Said that the decision by RBI to keep the repo rate unchanged amid skyrocketing inflation is a welcome step. This will help in controlling inflation. At the same time, reducing CRR from 4.5% to 4% will increase liquidity in the market by Rs 1.16 lakh crore. This will increase easy availability of credit which will benefit home buyers, making it easier for individuals to invest in long-term assets like homes. Housing demand remains strong, especially in the high-end and luxury segments. Further increase in CRR may be seen in this segment.
Important steps for real estate investment
Saransh Trehan, Managing Director, Trehan Group Said that RBI’s decision to keep the repo rate stable is important in ensuring affordable loan rates for home purchase, which is necessary to promote real estate investment. This move will help maintain the current pace of residential demand, especially in fast-growing areas like NCR. By stabilizing mortgage rates, this policy encourages home buyers and maintains the growth of the real estate sector. Additionally, it also supports macro economic objectives like inflation control and GDP growth, thereby proving to be an important step in increasing market confidence.
Vikas Garg, Joint Managing Director of Ganga Realty Said that the decision by RBI to keep the repo rate stable is welcome, which is in line with expectations. This is a wise step taken keeping in mind the current economic situation. With inflation coming under control and demand for real estate increasing, this policy will boost growth in residential sectors. This decision reflects RBI’s commitment to strike a balance between economic stability and growth and create a conducive environment for continued growth in the real estate sector.
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