RBI’s latest bimonthly monetary policy that maintains status quo on the policy rates with continuing accommodative stance in the wake of Covid 2.0 challenges, will bode well for the growth of residential realty.
It’s the sixth time in a row that RBI has kept the benchmark repo rate unchanged at 4%. Consequently, the reverse repo rate under the Liquidity Adjustment Facility (LAF) remains unchanged at 3.35%.The Marginal Standing Facility (MSF) and Bank Rate is also unchanged at 4.25%. MPC decided to keep policy rate unchanged to provide policy support to regain the momentum of growth and nurture the recovery. decided to continue with accommodative stance as long as necessary to mitigate the adverse impact of Covid pandemic and to revive and sustain growth on a durable basis.RBI has already extended a Special Liquidity Facility (SLF) of Rs 10000 crore to National Housing Bank (NHB) to support the housing sector.
Says Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global and Chairman, National council on Real Estate, Housing & Urban Development, “It is a progressive move on the part of RBI to keep rates and policy stance unchanged. As the low home loan rates have proved to be a major driver for residential realty , the continuation of the low interest rates regime will help keep the positive sentiment of home buyers intact. Moreover, with vaccination drive picking up and economy expected to recover, residential realty will see a turnaround. However, as the sector is getting burdened by increase in raw material prices, some relief in the form of rationalisation of stamp duty is required to keep the affordability of homes intact.