Industry expectations of an increase in the key rates and the RBI today once again decided to keep the repo rate unchanged that at 4% reverse repo rate is at 3.35% while maintaining its accommodative policy stance.
It can be considered as the tenth consecutive time that the RBI has maintained the status quo amid the current uncertainties for continued growth.
Welcoming the RBI move, the Chairman of ANAROCK Group says that the fact repo rates remain unchanged is good for home loan borrowers which are directly linked to external benchmark repo rates.
And it will continue at what are the lowest levels in the last two decades. The continuation of this low-interest rate regime supports the overall environment of affordability for some more time.
This support is needed for a sustained recovery in economic growth. When the market was expecting a hike in reverse repo rate also change the instance of the Central Bank to neutral to be a precursor to future rate hikes.
The status quo of the Bank comes as a breather for the real estate sector.
In the absence of the specific demand-side interventions from the Budget 2022 to 23 prospective homebuyers can continue to benefit from lower home loan interest rates.
Which are here to stay for now CEO, India & Managing Director, Market Development, and Asia at Collier’s.
The economy starts to recover and this move ensures sustainable growth would continue to be the focus. Alongside this are pandemic and lockdown continues to be a hopeful prospect for the real estate sector given it is a safe-haven and tangible asset at the time of crisis.
The home loan interest rate is low that regime has been greatly instrumental in further stimulating India’s real estate sector and it’s eventually increased investment and home-buying in the last two years.
Expectation about the coming quarter continues to remain optimistic for most of the sector ultimately reflecting in the S&P BSE realty index, said Ram Raheja, Director at S Raheja Realty.
In the Industry expert’s opinion, the window of opportunity for homebuyers to avail of low-interest rates has been extended for some more time it is unlikely to prevail for high longer as sooner or later.
The repo rate will rise. Overall this courageous and progressive stance by the RBI factors in real-time ground realities flies in the face of industry expectations that the repo rates would increase.
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