RBI slashed repo rate for 5th Time to Boost Falling GDP
RBI’s Monetary Policy Committee (MPC) has announced the fourth bi-monthly policy for 2019-20 after a 3-day meeting – – a decade-low of 5.15% to revive development; home, auto loans to become cheaper
RBI has cut the repo rate by a further 25 basis points. This can be the fifth straight rate cut as RBI helps the government in boosting economy. Central bank has brought down GDP development estimate from 6.9% to 6.1%.
The Reserve Bank of India’s Monetary Policy Committee (MPC) has sliced key repo rate for the fifth time within the year because it points to boost request and private utilization in the midst of a financial lull. Whereas the RBI committee had cut repo rate by 35 bps in the August policy meeting, it has decreased the key loaning rate by an extra 25 bps after its most recent bi-monthly audit assembly.
With the festive season around the corner, this move has been welcomed as individuals make purchases amid Navratras and Diwali. The real estate sector has been looking forward to such activities to boost deals because it is profoundly delicate to intrigued rate developments. This encourages diminishment of repo rate will not as it brought down the loaning rates but moreover incentivise speculation and boost utilization. The government has as of now reported an arrangement of measures counting steepest cut in corporate charge among others to jump-start development and restore the drooping economy.
Rohit Poddar, Managing Director, Poddar Housing and Development Ltd and Joint Secretary, NAREDCO Maharashtra, “Liquidity situation remaining in surplus during August and September, and agriculture being well-positioned to revive the domestic economy is noted as positive signs. The rate cut of 25 bps with an accommodative stance is expected to ascertain the lower lending rates in a bid to encourage economic activity across the sectors.”
RERA Expert Advocate Ishanee Sharma said: “The RBI has undoubtedly infused a lot of positivity in the Real Estate market at the onset of the festive season with 25 basis point reduction in Repo rate. The home buyers may expect drastic reduction in home loan interest rate which will further spur buying at this most auspicious time, and altogether enhance the much-awaited momentum of growth in the real estate sector.”
Kamal Khetan, Chairman and Managing Director, Sunteck Realty Limited, ““The sustained accommodative stance of the RBI is good for growth, especially for the residential real estate sector. Clearly, the benign inflation has given a greater scope for the bank to go for a revival of the economy. ”
Ajit Panda, Founder & CEO, Spaciya Advisors, “After the decision to reduce the corporate tax, another good news by our FM to cut the repo rate by 25 BPS is a gift during the festive season. It will result in more borrowings, more buyings, eventually improving the economy. People who have been on a look out for buying a property will now invest, which is a ray of revival to the diminishing sector. Not only real estate but the manufacturing, FMCG, education, auto sector will be benefited with this decision”.