The RBI should have lowered key lending rates to increase house demand during the current holiday season, according to Realtors’ apex body Credai, which also asked that the apex bank take lowering the repo rate into consideration at its upcoming meeting.
The Reserve Bank of India (RBI) relaxed its very hawkish policy stance to “neutral” on Wednesday, but it did not reduce its benchmark interest rate. This was the first step towards a rate decrease.
Credai National President Boman Irani said, “As RBI remains cautious regarding potential inflationary pressures, the central bank’s decision to keep the repo rate unchanged at 6.5 per cent – albeit with a revised neutral stance – seems somewhat like a missed opportunity, especially with the festive season around the corner”.
He continued, “A rate cut at this point would have been the perfect boost to accelerate consumer demand across industries.”
Irani anticipates rate cuts from the central bank in the upcoming quarter.
In the upcoming MPC meeting, RBI President G Hari Babu of the Realtors’ body Naredco recommended that rates be lowered. This will enhance demand for housing, promote economic growth, and raise investment in the real estate industry.
