RBI Repo Rate Cut: According to a report by SBI, a reduction of 25 basis points in the repo rate may be announced in the Monetary Policy Committee (MPC) meeting of the Reserve Bank to be held between August 4 and 6.
RBI Repo Rate Cut: The Reserve Bank of India is once again talking about cutting the repo rate. According to a report by the State Bank of India (SBI), a 25 basis point cut in the repo rate may be announced in the Monetary Policy Committee (MPC) meeting of the Reserve Bank to be held between 4 and 6 August.
Demand for houses will increase due to cheap loans
Dr. Gautam Kanodia, founder of Kreeva and Kanodia Group, says that balance and foresight is being seen in RBI’s policy, which has benefited the real estate sector. If the repo rate is reduced once again after the three cuts made in the past months, then it can give further impetus to both sales and bookings in real estate.
He said, the availability of cheap loans will increase the confidence of home buyers and the availability of cash in the market will also improve. At present, when there is fluctuation in economic activities and real estate has emerged as a stable option for investors, a possible reduction in repo rate can prove to be a step to encourage the country’s economy and strengthen investor sentiment.
A better environment will be created for buying a house
Similarly, SS Group MD and CEO Ashok Singh Jaunapuria says that according to the recent report of the Finance Ministry, retail inflation i.e. Consumer Price Index (CPI) in the country has remained below 4 percent continuously, which creates the possibility of further reduction in repo rate. The three cuts made so far show that the government wants to encourage demand in the real estate sector. If there is another cut of 25 basis points in the repo rate in August, then home buyers will get direct benefit from it. This will not only increase the confidence of buyers, but will also create a better environment for buying a house in the market.
Participation of mid-segment buyers will increase
Dr. Vishesh Rawat, Head of Marketing, Sales and CRM, M2K Group, says that the effect of the last repo rate cut was clearly visible, which reduced home loan interest rates and increased the participation of mid-segment buyers.
If RBI cuts the rate by another 25 basis points in the upcoming policy meeting, it will give new energy to the real estate sector. This will not only increase the confidence of buyers, but developers will also get affordable funding for projects, which will accelerate construction activities.
CRC Group’s Director Marketing and Business Management Salil Kumar says that the central bank has cut the key policy rate repo by one percent this year. Interest rates have come down in the last few months, which has improved the environment for people to buy a house.
If the repo rate decreases once again, the real estate market will get a good benefit before the festive season and investors will also be more active. Due to the reduction in the repo rate, all loans like home loan, car loan become cheaper, due to which people’s EMI also decreases.
