In a move that was largely anticipated, the RBI has cut its repo rate by 25 basis points for the third time in a row, this year. The repo rate now is 5.75% and its future monetary stance has been changed from neutral to accommodative, a move that is being hailed by the industry as a much needed one. Mani Rangarajan, Group Chief Operating Officer- Housing.com- Proptiger.com- Makaan.com- Fastfox responded as follow.
“This move to reduce the repo rate will be great from a sentiment point of view, and will add to the current wave of optimism that has been infused into the market, with the re-election of the NDA government. Whether home buyers benefit from this directly or not, will depend largely on whether the banks pass on the rate cut benefits to them. In the past, that has not happened. However, this fact is also to be evaluated in light of another fact – with the ongoing NBFC crisis and increasing NPAs, reducing interest rates for borrowers, is not very easy for banks. We are however hopeful that with the increasing sales momentum in the last quarter and the improved market sentiments post the election results, this move will add a much-needed boost to the current market sentiments.”
