“The decision to keep the repo rate unchanged comes as a surprise. While the recent demonetization drive has brought in the necessary liquidity into the banks, lowering the repo-rate would have helped ease borrowing costs. This would have provided an added thrust to the government’s initiatives for affordable housing and fueled demand. A low inflation rate amidst slowdown in projected economic growth provided a conducive environment to reduce rates.”
Anshuman Magazine, Chairman, India and South East Asia, CBRE