Real Estate Industry Reaction on RBI Monetary Policy Review

Posted by: at 6/07/2017 05:55:00 am

Mr. Prashant Tiwari, Chairman, Prateek Group, said

Mr. Prashant Tiwari, Chairman, Prateek Group, said "The announcement is according to the market dynamics and the rates will only reduced once the inflation settles down. Although government is taking corrective measures for economic growth and stability, there is a need to adopt a balanced approach considering the growth of key sectors like real estate. Homebuyers have been waiting for reduction and they will swarm the real estate market thereby helping the sector regain the glorious days".​

Mr. Saurabh Jindal, Joint Managing Director, SVP Group


Mr. Saurabh Jindal, Joint Managing Director, SVP Group, said "We believe that the RBI has kept the rates unchanged looking at the inflation factor and it is unlikely that rates will be changed before the effects of GST comes into effect or the better effects of monsoon are visible on economy. However, in real estate we are hopeful that lending rates may still come down looking at the government's focus on housing for all. Hoping for the best, we can say that it has been long due and will help in reviving the market sentiments".​

According to Deepak Kapoor, President, CREDAI Western UP


According to Deepak Kapoor, President, CREDAI Western UP "Real E​state sector was very much in need of a rate cut even if it was to be of 25-50 basis points. But, similar to last time, this policy review also did not brought any relief to the real estate sector as status quo was maintained. The realty sector is already under immense pressure and most of the projects in Noida & Greater Noida nearing completion and readying for possession soon. Therefore, in such a scenario, rate cut was the need of the hour to provide the much needed boost to the sector and to facilitating growth on the other hand".



Reserve Bank of India’s Monetary Policy review today comment from CBRE

Reserve Bank of India’s Monetary Policy review today comment from CBRE

Anshuman Magazine, Chairman – India and South East Asia, CBRE: “The second bi- monthly policy review was as per industry expectations with both the repo rate as well as the reverse repo rate remaining unchanged. The reduction in the statutory liquidity ratio (SLR) by 50 base points to 20%, would help provide more liquidity to banks. This could prove beneficial for prospective home buyers with the expectation that lending institutions could further lower the interest rates on loans. A focus on controlling the inflation rate coupled with other reforms is expected to further foster the growth of the real estate sector in the second half of the year.”

Ms. Bekxy Kuriakose, Head - Fixed Income, Principal Mutual Fund


Quote/ Views by Ms. Bekxy Kuriakose, Head - Fixed Income, Principal Mutual Fund on Second Bi – Monthly Monetary Policy

 quote by Ms. Bekxy Kuriakose, Head - Fixed Income, Principal Pnb Asset Management Company on the Second Bi – Monthly Monetary Policy:

“As expected by us RBI kept key rates on hold and maintained their neutral stance. Inflation projections and Real GVA growth for FY 18 have been lowered based on recent data releases. On GST RBI assesses that it may not have a material impact which is comforting. RBI appears to be against taking premature action on rate front and would like to observe further data prints on inflation and real activity front. The key concern remains the state of banks’ balance sheet including much needed recapitalization.

Given recent data prints, ample banking system liquidity and macroeconomic stability on domestic front we think gilt and bond prices will we well supported post RBI policy.”



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