RBI monetary policy quote – Amit Goenka, MD and CEO at Nisus Finance
Most real estate developers were hoping for a rate cut announcement which would have further strengthened the demand for housing. However, since the economy seems to be in a deflationary phase a higher surplus in the hands of consumers is likely to help keep demand for housing robust.
RBI monetary policy quote – Dr. Mohit Ramsinghani – Chief of Sales -Runwal Group
An interest rate cut would have been a heads-up for India’s real estate market. lowering borrowing costs and stimulating demand. Even though the year-long downward trend in core inflation is encouraging, inflation is still close to the upper band of the apex bank’s 2-6 percent target, leaving little room for any rate cut. Interest rates are likely to remain stable, and the demand for housing in the country would continue to get a boost.
CBRE’s Reaction Quote | RBI’s Repo Rate
The RBI’s decision to maintain the repo rate unchanged is significant as it monitors upside risks to inflation for the Indian economy. This consistent stance of RBI underscores managing price stability amidst inflationary pressures. It’s positive news for future homeowners, as borrowing costs won’t see an increase, making buying a home more accessible
Reaction on RBI MPC -Mr. Ajay Kumar Srivastava, MD & CEO, Indian Overseas Bank
The RBI MPC’s decision to keep the repo rate unchanged at 6.5 percent is a positive move even though retail inflation continues to be above its target of 4 percent. With the Indian economy showing signs of strong growth momentum and stability, the GDP growth projections marked at 7 percent for FY25 is encouraging.
The ECBs and NRI deposits recording higher net inflows, and forex reserves marking at an all-time high of $645.6 billion, is also building a growth roadmap for the banking sector. Another positive development has been on RBI facilitating deposits of cash at CDMs using UPI as well as permitting use of third-party UPI apps for making UPI payments from PPI wallets. All these measures are going to further enhance customer convenience and boost the adoption of digital payments.
MPC Quote | Dr. Poonam Tandon | Chief Investment Officer | IndiaFirst Life Insurance
The Monetary policy was on expected lines on status quo on rates and no change in stance, the focus of the MPC to bring the inflation to 4% on a sustainable basis. The RBI Governor has stated that they will be nimble-footed with respect to liquidity. The GDP has been pegged at 7% for the year and the inflation at 4.5%. This careful stance reflects concerns over potential inflationary pressures arising from volatile food prices, recent upticks in oil prices, and robust economic growth.
The policy also gives importance to growth while acknowledging inflationary risks from rising oil prices and volatile vegetable prices. The Governor also stated that the Rupee has been one of the most stable currencies which reflects India’s sound macroeconomic fundamentals, financial stability, and improvements in the external position. All in all, it is a rational policy with a focus on growth and price stability.
NMIMS: Quote on RBI MPC
RBI retained its current hawkish pause aligning with market expectations while maintaining an extremely vigilant attitude towards inflation numbers as it slowly moves closer to its target but upside risk still prevails owing to uncertainty of food inflation, recent spikes in fuel prices, and persistent geo-political tensions. High-interest rates may keep households on edge but are unlikely to hurt the major investment and real estate sectors and will lend stability to existing and recently gained momentum displayed by credit growth outpacing the deposit growth of commercial banks.
If this resilience in the growth outlook continues and inflation also follows a desired trajectory, it is likely that RBI can change its stance to neutral around August ’24. The current decision will help manage the seasonal variation of liquidity conditions in the domestic market through a mix of policy instruments viz VRR and VRRR auctions and rupee-dollar movements amid enhanced expectations of a rate cut by Fed in coming quarters. Bond yield and equity premiums are expected to remain stable in the near term amid anticipation of strong FII flows and reduction in government borrowings in coming quarters.
Views of Mr. Dilip Modi, Founder, of Spice Money on announcements from the RBI’s Monetary Policy Meeting
“We want to applaud the Reserve Bank of India for its forward-thinking approach and congratulate the regulatory body on completing its 90th anniversary earlier this week. The RBI has consistently led the way in guiding India’s economy towards stability.
RBI’s announcement to expand the access of UPI for Prepaid Payment Instruments (PPIs) through third-party applications, during the MPC meeting held today is a significant step towards financial inclusion. It grants PPI users the ability to seamlessly integrate their accounts with a wide range of UPI-enabled services, mirroring the convenience and flexibility traditionally reserved for standard bank account holders. This will not only simplify the payment process for PPI users but also open up a plethora of digital payment opportunities previously inaccessible to them, further enhancing customer convenience and boosting the adoption of digital payments, especially among small businesses. This move helps further Spice Money’s mission to extend digital payment and financial services to nanopreneurs and customers in rural and semi-urban India.
Furthermore, we appreciate the RBI’s ongoing efforts to simplify regulations and reduce compliance burdens. These initiatives not only demonstrate the regulator’s commitment to enhancing the ease of doing business in the fintech sector but also pave the way for greater innovation and growth opportunities.”
RBI Policy status quo will propel economic growth: PHDCCI
Softening of headline inflation towards 4.5% will create scope for a repo rate cut, says industry body PHDCCI
RBI’s decision to maintain a status quo on its policy rates will propel economic activity and boost economic growth, said Mr. Sanjeev Agrawal, President, PHD Chamber of Commerce and Industry (PHDCCI), in a press statement issued here today.
The continuously accelerating economic growth and softening inflation trajectory, coupled with the status quo in repo rate will lead to much higher GDP growth in FY2025, said Mr. Agrawal.
We expect a repo rate cut as and when headline inflation softens around 4.5%, said Mr Agrawal.
As the third quarter of FY23-24 GDP surprised with a significantly high growth of 8.4%, the current financial year is also expected to give such surprises on the back of robust economic activity and enhanced resilience of the economy, said Mr Agrawal, President, PHDCCI.
Reaction quote from Mr. Dhruv Agarwala, Group CEO, Housing.com, PropTiger.com on the MPC meeting of RBI
The Reserve Bank of India decided to keep the key repo rate unchanged at 6.5 percent in its first monetary policy review of the financial year 2024-25. Enclosed is the comment from Mr. Dhruv Agarwala, Group CEO, Housing.com, PropTiger.com.
“The RBI leaving the repo rate unchanged for the seventh time in a row amid improving growth numbers and moderating inflation augurs well for the real estate sector in India. Not only would this reflect instability in housing loans but also in property prices since the cost of borrowing would remain stable for developers as well. This is going to work tremendously well for the economy in general and the sector in particular.”