Just a pause, says RBI; realtors heave sigh of relief

RBI Governor Shaktikanta Das speaks at a press conference on Thursday. Pic/PTI

After six consecutive rate increases aggregating to 250 basis points since May 2022, the Reserve Bank of India on Thursday kept key benchmark policy rate at 6.5 per cent even as inflation is trending above its tolerance level. While Governor Shaktikanta Das, however, said the RBI will "not hesitate" in taking further action on rates if needed, realtors heaved a sigh of relief. "If I have to characterise today's monetary policy in just one line...it's a pause, not a pivot," Das told reporters.

"RBI's decision to maintain the repo rate has been received well by the Indian real estate industry as it will not only accelerate housing demand and supply but also supplement sectoral growth overall," realtors' apex industry body CREDAI National President Harsh Vardhan Patodia said. This move will especially provide an impetus to affordable housing, he added.

Also Read: RBI projects FY24 inflation at 5.2 per cent, says fight against inflation far from over

Another major association NAREDCO President Rajan Bandelkar said the RBI has provided a much-needed boost to the sector, which is already witnessing a positive momentum. "This decision offers stability and certainty to developers, investors and homebuyers, and can further stimulate demand for housing loans," he said. Naredco National Vice Chairman Niranjan Hiranandani said, "This act of relief will restore confidence in homebuyers' sentiment and boost demand rally in the real estate."

6.5%
The repo rate at present

This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever