Real estate The sector described the Repo Rate of the Reserve Bank of India (RBI) by 0.5 percent reduction and said that this will increase the sales of houses and the sector will get the necessary momentum. The RBI on Friday reduced the repo rate to 5.5 percent with the aim of speeding up economic growth amid softening of inflation. The central bank has cut the repo rate for the third consecutive time. The special thing is that this time the RBI has doubled the repo rate from expectation. With this, RBI also announced a 1 percent cut in cash reserved ratio (CRR) unexpectedly for banks. These measures will give necessary support to the economy amidst the ongoing challenges globally.
Customers perception will improve
The top organization of the real estate sector, Credai, described the RBI’s decision to reduce the repo rate as a bold step and said that it would help increase the sales of residential properties. National President of CREDAI (Confederation of Real Estate Developers Association of India), Shekhar Ji Patel said that RBI’s decision would improve customers’ perception, which would benefit moderate income and affordable housing areas the most, which have been struggling for the last few years. Patel said, “We welcome the RBI’s decision and consider it an adventurous and time to encourage domestic demand.”
What did the chairman of the Naradco say on the verdict
The President of the National Real Estate Development Council (Nareedco), the top body of the real estate sector, G. Hari Babu said, “The decision by RBI to cut the repo rate for the third consecutive time reflects his intentions to support the increase in challenging global environment. Low interest rates means easy access to loans, promoting better cash and consumer expenses, which is necessary to maintain the pace of the economy. ”
The speed of the economy will be faster
Space India CMD Rakesh Yadav welcomed the RBI for the third consecutive time in the repo rate and a big reduction of June 0.50% in the policy of June, saying that the move will help speed up the pace of the Indian economy. After this major cut in the repo rate, bank loans will be cheaper. This will make all kinds of loans cheap including home loan, car loan. Due to the loan being cheaper, demand in Indian economy will increase, which will help in increasing the speed of GDP.
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