Realtors react to RBI Repo rate cut

Realtors react to RBI Repo rate cut

After cutting policy rates five times in the past one year, the RBI had been on a pause since December in view of high inflation. But as per the need of the hour, this time RBI has reduced the rate cut by 75 basis points which is the biggest repo rate cut till date to boost the liquidity at this time of crisis. The RBI has cut repo rate to 4.4 per cent and reverse repo rate by 90 bps to 4 per cent.

To keep the economy of the country from sinking at the time of global pandemic when the whole world is struggling, the government is striving to keep their people safe along with keeping the economies afloat. With this RBI’s announcement, realtors believe it will boost the liquidity in the sector.

Commenting on the rate cut, Mr. L.C Mittal, Director of Motia said “Like every other industry or sector, real estate is in need of liquidity and with the latest announcement by the RBI Governor we are hopeful that banks will consider providing loans to the sector. We have to understand that the sector makes a good part of the GDP and contribute in a major way towards the economic growth of the country. In the present situation, the sector should not be left behind as any ill-effect on real estate will have a negative impact on the overall growth.”

Whereas, Mr. Tejpreet Singh Gill, Executive Director, Gillco Group said, “Along with undertaking several commendable measures to tackle the grave situation, the government and authorities are also striving to keep the economy of the country stable. And, this announcement by RBI has come a great relief. With banks passing on the benefits to the customers, this move will aid the real estate sector which is the biggest contributor to the economy of the country. With such low interest rate of 7-8%, the move will not only reduce the burden of EMIs off the shoulders of people who are struggling to pay their bills while sitting in the homes during the lock down but will also bring new windfall of buyers.”

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