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Real estate industry lauds RBI's move to maintain status quo on interest rates

ANI | Updated: Dec 09, 2021 16:43 IST

New Delhi [India], December 9 (ANI): The real estate industry welcomed the Reserve Bank of India's (RBI) decision to keep the interest rates unchanged for the ninth consecutive time.
The RBI's six-member monetary policy committee (MPC), headed by Governor Shaktikanta Das, on Wednesday announced its decision of maintaining the status quo on key rates in its bi-monthly policy statement for the ninth consecutive time.
The repo rate has remained the same at 4 per cent whereas the reverse repo rate has been kept unchanged at 3.35 per cent.
The repo rates were slashed by RBI in March 2020 to soften the blow from the coronavirus pandemic and to give an impetus to the economy.
Commenting on this move, Aditya Kushawaha, CEO and Director Axis Ecorp said, "We welcome RBI's decision to keep the repo rate unchanged at 4 per cent and continue its accommodative stance. It seems to be a well-thought move, given the uncertainty emerging from the new COVID-19 variant. The Indian economy grew better than expected and posted 8.4 per cent growth during Q2 FY22 and we believe that today's decision will support further growth through increased consumption and spending. We are also keeping a close eye on the raw materials as they can cause the rates to go up in the near future and disrupt the current growth graph."
Vinit Dungarwal, Director, AMs Project Consultants Pvt. Ltd. said, "The holding of rates by the MPC is on the expected lines. The continued intervention by RBI and holding on to the rates has helped in demand generation in the real estate sector. Through these sustained efforts, most high-frequency indicators have bounced back to pre-COVID levels. RBI has also projected the CPI inflation for Q3 and Q4 of FY22 at 5.1 per cent and 5.7 per cent respectively. This is indicative of RBI's belief that the current inflation levels are temporary in nature".
Dr Samantak Das, Chief Economist and Head of Research & REIS (India), JLL said, "The unexpected global headwinds propelled by the new Covid-19 variant to the economic recovery prompted Reserve Bank of India to maintain the policy rates. RBI has kept the policy rate unchanged for the ninth time as it has been trying to support growth and rein inflation. Indian economy grew better than expected by posting 8.4 per cent growth during Q2 FY22 indicating the strength of the economy. The accommodative stance and gradual normalisation measures also signal that economy is on the firm path of growth. The Indian economy has demonstrated its resilience to uncertainty in the past and it is expected to deal with it more prudently in future."
The growth registered by the real estate sector in Q3 2021 is likely to continue and to end this year on a positive note. In Q3 2021, residential sales witnessed an upward trajectory, increasing by 65 per cent on a sequential basis.
This sector is expected to benefit from a regime of low mortgage rate, coupled with duty waivers, realistic property pricing and attractive offers leading to affordable synergy. (ANI)