NEW DELHI (INDIA): The first bimonthly RBI Policy announcement of the year 2017 by RBI Governor Urjit Patel and the second after demonetization of old currency, maintaining status quo and keeping the repo rates unchanged at 6.25% was an expected move but the real estate industry needs more, said Ashwin Sheth, CMD, Sheth Corp.
“Although the rate was kept on hold to assess demonetization impact on inflation, but a rate cut at this stage would have helped in lowering the home loan interest rates further after most banks cut down their interest rates on loan in past couple of months.
This could have made home buying a reality for most buyers who have been eagerly waiting for the rates to cut down. Also, the banks were flushed with funds following demonetization of old high value notes from November 9”, continued Mr. Sheth.
“The Government announced infrastructure status to affordable housing in the recently concluded budget and is already trying to implement policies that will boost growth of the real estate sector. In the same vein, RBI too should have looked at the real estate sector with new optimism”, added Sheth.