Anshuman Magazine, Chairman and MD, CBRE South Asia Pvt. Ltd on the RBI Credit Policy announced today said “The RBI move to keep the repo rate unchanged will be appreciated by the industry. Markets had factored in a 25 bps rate hike, given the overwhelming expectations of an increase in repo rate due to the tenuous state of the economy."

"This status quo decision will bring in more stability on home loan interest rates. The move could also be seen as an indication of an economic recovery," he said in a statement.

SLR cut welcome surprise

Sanjay Dutt, Executive Managing Director- South Asia, Cushman & Wakefield, has said “The RBI’s decision to cut SLR (statutory liquidity ratio) by 50 basis points has come as a welcome surprise. This decision is in consonance with the Central Government’s desire to increase the credit off-take in order to push economic growth.”

In a statement, Dutt said, “The RBI has stuck to its stance that there will be no rate cuts unless inflation is tamed. However, we anticipate that this is the end of a liquidity tightening cycle. We expect that the annual budget and the monsoon season will be key factors on the basis of which RBI will begin easing interest rates.”

The strong sense of optimism for improvements in the economy post the arrival of a strong Central Government that will push through key economic reforms is also expected to spur activity in various sectors. The real estate sector can now look forward to housing sales and office leasing improving gradually over the next 6-12 months as demand from various sectors manifests in an improving economy, he said.

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