Shishir Baijal, Chairman & Managing Director, Knight Frank India on RBI Monetary Policy
“The Reserve Bank of India’s Monetary Policy Committee has decided to keep the repo rate unchanged amid uncertainty and volatility in global and domestic economies due to upward pressure in crude prices and inflation expectation, surge in bond yields and firming up of interest rates globally. In the current interest rate cycle, we have touched the lowest level and it will come as no surprise if the cycle turns.
Against this background, the impetus for stimulating housing demand does not lie on interest rate alone but on other reforms and steps taken by various stakeholders. Measures such as implementation of RERA in true letter and spirit, palatable payment plans for home buyers and relatively cheaper house prices are some of the critical determinants to revive the real estate sector. Until such time the benefits of these measures percolate across markets, the sector will continue to reel under pressure.”