The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) kept the repo rate unchanged at 4 per cent for the tenth consecutive time while maintaining an ‘accommodative stance’ as long as necessary, RBI Governor Shaktikanta Das announced on Thursday. The central bank governor said that the MPC had voted unanimously 5:1 to maintain the accommodative stance and added that the reverse repo rate too was kept unchanged at 3.35 per cent. The Marginal Standing Facility (MSF) rate and bank rate also remained unchanged at 4.25 percent.
The Industry opinion:
Ramesh Nair, CEO, India & Managing Director, Market Development, Asia at Colliers.
RBI continues to maintain an ‘accommodative’ stance keeping the repo rate unchanged yet again at 4% in its monetary policy meeting in Feb 2022. This support is needed for sustained recovery in economic growth. At a time, when the market was expecting a hike in reverse repo rate and change in stance of the Central Bank to ‘neutral’ to be a precursor to future rate hikes, the ‘status quo’ of the Bank comes as a breather for the real estate sector. In the absence of the specific demand-side interventions from the Budget 2022-23, prospective homebuyers can continue to benefit from lower home loan interest rates which are here to stay for now.”
Amit Goyal, CEO, India Sotheby’s International Realty
RBI Decision to maintain the status quo on policy rates is good news for home buyers. The historically low home loan interest rates will continue for some more time and keep the mood buoyant. The other welcome news is that the business outlook remains optimistic and real GDP is projected at 7.8% for next fiscal by the governor.
Suren Goyal, Partner, RPS Group
The continuation of accommodative policy by RBI augurs well for the real estate sector. It is likely to boost demand and we hope the accommodative stance will continue for the next year or so
Mr R K Arora, Chairman, Supertech Ltd
We welcome the RBI stance to keep the repo rates unchanged at 4% and reverse repo rate at 3.35% for the tenth consecutive time. The unchanged repo rates will help in maintaining the low interest rate regime and this works well for home buyers planning to buy homes with help of home loans.
Mr. Gautam Thacker, President, NAREDCO – Neral-Karjat Unit
“RBI keeping the policy rates unchanged is a welcome move aimed at further strengthening the Economy post covid it is targeted to keep the buying sentiments high. In short, it’s a very positive decision for the Indian Economy”
Haresh Mehta, CMD, Rohan Lifescapes
“The progressive announcement made by the RBI, to keep the repo rates unchanged is very thoughtful and motivating. The decision on holding on to the existing rates will help the real estate sector to gain more demand. The fact that the rates will remain unchanged is definitely falling in the favour of all the home loan borrowers as the affordability quotient will continue to be there in the current time of uncertainty. With the continuation of the same old rates, it is expected that consumer sentiments will be highly optimistic when it comes to buying a home. The consumption in the residential space is expected to expedite with this move of the RBI.
Overall, the decision taken by RBI is warmly welcomed as it will definitely be contributing towards the growth of the country’s GDP.”