Skip to main content

RBI hits pause button, keeps rates unchanged due to inflation pressure


RBI hits pause button, keeps rates unchanged due to inflation pressure


6th February 2020: The Reserve Bank of India (RBI) the apex bank of the country released the Sixth Bi-monthly Monetary Policy Statement for the current financial year. The monetary policy committee assessed the current macroeconomic situation and continued with accommodative stance and kept the Repo Rate unchanged due to inflation pressure. Considering that there is a direct link between repo rate and market rate of interest on home loan, one of the foremost real estate players in Delhi-NCR, KW Group shared its opinion on this step taken by the RBI.
Pankaj Kumar Jain, Managing Director, KW Group said, “Considering the rising inflationary pressures and slowing GDP growth, the industry was expecting the RBI to cut repo rate by at least 25 basis points in this last monetary policy statement of the current financial year, but the apex bank chose to maintain status-quo second time in a row which is an utterly disappointing move for all the stakeholders of the real estate sector.”  He added that the timing of this policy review was significant as it came just after the announcement of the budget which largely turned out to be a non-event for the real estate sector.
“If a rate cut was announced in this policy review it could have spread much-desired positivity in the real estate market. Still, all is not lost, and it’s the time the apex bank should immediately issue directions to the home loan providers to pass on the benefits of the repo rate reduction of 135 basis points accumulated all throughout this financial year,” said Jain.
The industry stakeholders are of the opinion that it’s urgent to bring down the home loan rates to enthuse buying momentum in the market. While the MPC decided to continue its accommodative stance rather than announcing a rate cut, the homebuyers struggling with the other household requirements due to high rate of inflation, remain reluctant to enter the competitive housing market.   

Comments

Post a Comment

Popular posts from this blog

Vigor Media Worldwide bags PR mandate for OSRAM

OSRAM boasts a wide range of state-of-the-art products which are highly energy efficient and these include LEDs, Emitters, Lasers, Sensors, Traditional and Speciality Lamps, Light Management Systems, besides Luminaries and Flexible Lighting Systems to  name just a few among many others. Vigor Media Worldwide has bagged the PR mandate from OSRAM, a leading global brand in lighting industry which has been successfully dominating the market. The contract comes as another acknowledgement of the distinctive PR and communications approach of Vigor Media Worldwide. The role of Vigor Media Worldwide will be to build a strategic communication framework for OSRAM to further strengthen its unrivalled market leadership positioning. Vigor Media Worldwide won the prestigious account after a multi-agency pitch followed by a competitive bidding process. The mandate for OSRAM will be handled by the Delhi-NCR office of Vigor Media Worldwide with the support from its proficient team alon
Post a Comment
Read more

Halonix shines at splendid Light India 2018 Expo held in New Delhi

Halonix showcased its wide and unmatched range of superior LED products during the Light India 2018 Expo organised by the Electric Lamp and Component Manufacturers Association of India (ELCOMA) in Pragati Maidan, New Delhi.   Offering a plethora of LED products, Halonix Technologies Pvt. Ltd., one of the country’s most progressive and environment friendly lighting companies showcased its wide and unmatched range of products across LED, Luminaires, Home Decorative Lighting, Commercial & Industrial Lighting, Street Lighting, Flood Lighting, Halogens and High-Intensity discharge Lamps, among others at the splendid Light India 2018 Expo held at Pragati Maidan, New Delhi. Thrilled with the numerous responses received   by Halonix at the expo, Rakesh Zutshi, Managing Director,Halonix Technologies Pvt. Ltd. said: “ Light India 2018 Expo helped us to engage with prospective buyers and discuss many supplier agreements, besides garnering considerable business leads. With our k
Post a Comment
Read more

The spirit of Navratri, Dusherra and Khejri Poojan overwhelms Mewar

The autumn Navratri (nine sacred days and nights) form one of the auspicious times in the Hindu calendar. On the ninth day of Navratri, which is a symbolic day of victory, arms and other symbols of the warrior are worshipped in northern India. In Rajasthan, famous for its cavalry charges, this day is also marked by the worship of war animals like the elephant and the horse. The worship of the horse, Ashwa Poojan, continues till date. The horses that are part of the rituals are those belonging to the 'Marwari' breed, a distinct internationally recognized breed that is threatened with extinction.  MMCF and Shriji Arvind Singh Mewar of Udaipur, has set up the Equine Institute Udaipur to maintain a viable population of this culturally important animal. They are fully bred and nurtured by Maharana of Mewar Charitable Foundation, Udaipur. In the earlier tradition of Mewar, Maharana used to perform Gaj (Elephant) worship too with Vedic hymns after Ashwa Poojan sitting at Nagina Badi.
Post a Comment
Read more