The Reserve Bank of India's (RBI) decision to keep the repo rate unchanged again is a boon for the Indian real estate sector, said real estate consultancy firm Anarock.
The report, authored by Soumya Kanti Ghosh, SBI's Group Chief Economic Adviser, expects first repo rate cut in October meeting. The repo rate is the rate of interest at which the RBI lends to other banks.
The RBI's Monetary Policy Committee (MPC) maintained the status quo on the Repo Rate, keeping it unchanged at 6.5 per cent. The decision comes amidst a backdrop of economic uncertainties both domestically and globally.
Noting that that economic growth in 2024-25 is projected to slow by over half a percent relative to 2023-24, Varma said it was a reminder that high interest rates entail a growth sacrifice.
Inflation continues to remain the main concern for the Reserve Bank of India's monetary policy committee members before it goes ahead and loosens its stance on key interest rates.
Pressure in food prices has been interrupting the ongoing disinflation process in India, and posing challenges for the final descent of inflation trajectory to the 4 per cent target, as per minutes of RBI's monetary policy meeting that was held earlier this month.
Along anticipated lines, RBI kept the policy repo rate unchanged at 6.50 per cent, the seventh time in a row. The repo rate is the rate of interest at which the RBI lends to other banks.
As the Reserve Bank of India (RBI) maintained the status quo in repo rate for the seventh time this month, rating agency Crisil now expects the rate cut cycle to begin from mid-2024. The repo rate is the rate of interest at which RBI lends to other banks.
The country's largest public sector bank State Bank of India said the monetary policy statement of the RBI reflected India's high growth and low inflation. Reacting to the central bank maintaining the status quo in the repo rate, SBI Chairman Dinesh Khara said
Industry welcomes Reserve Bank of India decisions in its first monetary policy report of FY 25. One of the key highlights of the report is the RBI's decision to maintain the repo rate at its current level, a move that has been widely applauded by industry leaders.