RBI MPC Repo Rate Response
By – Mr Dharmendra Raichura – VP & Head of Finance at Ashar Group
The consistent maintenance of the repo rate at 6.5% for the sixth consecutive time reflects the central bank’s commitment to achieving the 4% Consumer Price Index (CPI) target. This stability in monetary policy is crucial for fostering economic predictability and sustaining investor confidence. An unchanged rate may seem static, signals a strategic approach to balance inflation control with economic growth. As a real estate developer, we acknowledge the importance of a steady interest rate environment, as it influences borrowing costs and subsequently impacts the property market. The resilience in the repo rate provides a conducive atmosphere for sustainable development.
By – Ms Manju Yagnik, Vice Chairperson of Nahar Group and Senior Vice President of NAREDCO- Maharashtra
The RBI has maintained the 6.5% repo rate, as expected. Nonetheless, considering that the macroeconomic conditions are favourable and the rate has been held at 6.5% for the past few quarters, the Indian real estate market and the overall economy would have benefited immensely from a rate reduction. This action will keep consumer housing costs and mortgage rates higher, and we hope it won’t negatively affect the feelings of prospective homeowners.
By – Mr Atul Parakh, CEO of Bigul
Following the MPC meeting on February 8th, the repo rate has been kept unchanged at 6.5%. This decision surprised economists, who had expected the MPC to raise rates in order to combat inflation. However, the MPC stated that it is concerned about the impact of higher rates on economic growth. There might not be a significant reaction from the market, and investors may adopt a wait-and-watch approach. Banking, Finance, and Consumer durables are likely to benefit from unchanged rates, whereas technology, healthcare and utilities will be less affected.