“RBI’s accommodative stance in the last few months has kick started the economy that had experienced a sudden contraction due to the pandemic. These measures have ensured both – demand stimulation and liquidity in the economy, achieved by keeping the short term borrowing rates well below benchmark.
Today’s announcement remains in line with the RBI’s goal of nurturing growth despite the rise in inflation. Keeping demand stimulated to maintain the current momentum would be critical for continuous acceleration of the economic recovery. Recently reviving market performance indicators, despite all odds and supported by government and central bank interventions, have enthused a great sense of relief across real estate markets in the country.
Home loan interest rates, which are at the lowest, have played a key role in rekindling the latent demand in housing market by nudging home buyers to make purchase decisions even during the pandemic. RBI’s decision to keep the rates unchanged will keep the momentum of demand intact to provide the much needed stability , as even while there is recovery in the economy, it is still fragile and highly volatile.”
– Mr. Shishir Baijal, Chairman & Managing Director, Knight Frank India