RBI Monetary Policy Expectation
“After the Budget speech that did not carry much for the sector, the real estate community is turning towards the Reserve Bank of India (RBI) for some relief by providing some more lending rate concessions. However, keeping in mind the CPI inflation rising beyond the target range, the central bank is expected to leave the policy interest rate unchanged in this bi-monthly period. RBI, in its last meeting, had increased the inflation forecast for H2 FY20 to 5.1-4.7% from 3.5-3.7%, reflecting the inflationary concerns. The apex bank may also wait to see the impact of bank transmission of policy rate cuts so far. For the real estate sector, credit crunch is a big cause of concern. We hope that the RBI will come up with measures to increase credit supply from banks and NBFC for the real estate sector,” said Shishir Baijal, Chairman & Managing Director, Knight Frank India.