Highlights from RBI monetary policy

Accommodation Times New Services

Taking the real-estate industry by surprise, the announcement of RBI monetary policy remained largely uneventful. Following are certain highlights from the monetary declaration:

  • The Reserve Bank of India kept the repo rate unchanged at 6.25%. Reserve repo rate is set at 5.75%.
  • RBI kept short term lending rate unchanged.
  • Retail inflation target is set at 5 per cent for the fourth quarter of the fiscal. The medium-term target is set at 4 per cent between the band of +/- 2 per cent supporting growth.
  • RBI said that Demonetisation could help in reducing inflation by 10-15 basis point by December.
  • Cash reserve ratio is yet the same, set at 4%

Here’s what industry leader had to say about the RBI monetary policy:

Mr. Munish Doshi- Managing Director, ACME Group-  “While it has been noticed that although the deposit rates have gone down,  it is also expected that RBI takes further positive steps to cut down the policy rates, resulting in the Banking sector to put forth an affordable lending rates facilitating the growth of Real estate and infrastructure industry.

This positive transition is also vital for the growth of infrastructure and manufacturing sectors which are directly related to all our ancillaries to the Real Estate industry.

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