Benchmark Lending Rate To Continue @ 6.5%

Benchmark Lending Rate To Continue @ 6.5%

RBI May Press Pause Button Again

Reserve bank of India may consider extending benefits for the affordable and mid-housing segment, realtors hope

NEW DELHI, Oct 3 (The CONNECT) - RBI is expected to continue its ‘pause’ stance and keep the benchmark lending rate at 6.5% for the fourth consecutive time, said  Vimal Nadar, Senior Director & Head of Research at Colliers India.

RBI’s monetary policy is scheduled to be announced on Thursday.

Nadar said while consumer price inflation has moderated from the 15-month high of 7.44% in July 2023, the concerns of elevated food inflation remain high, and the Central Bank will be cautious.

Nonetheless, RBI has already revised the inflation projection to 5.4% for FY 2023-24 to accommodate these concerns. Steady repo rates will continue to bring in stability in home loan lending rates by major banks & financial institutions, he said

This is critical during this festive period when most of the fence sitters & first-time home buyers look for lucrative deals from developers & lending institutions to buy their dream home, he added.

Aman Sarin, Managing Director, Anant Raj Limited recalled that in recent past, the Reserve Bank of India has taken many effective steps to ensure that liquidity is available, inflation is under control and business is growing. “We are very hopeful that RBI will maintain its current policies, focusing on bolstering economic growth, particularly in light of the approaching festive season while keeping a watchful eye on inflation and liquidity in the system,” he said.
In consideration of the real estate sector's funding requirement, Sarin said, “we strongly believe that the Reserve bank of India may consider extending benefits for the affordable and mid-housing segment in order to increase the affordability of homes specifically in metropolitan cities”.

This would help to achieve Housing for all in large cities where the maximum working population resides, he added.

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