RBI keeps Repo Rate unchanged, it’s a pause, not a pivot, says Governor Das

The RBI’s Monetary Policy Committee (MPC) on Thursday decided to keep the Repo Rate unchanged at 6.50 per cent. Other policy rates were also kept unchanged. The RBI Governor said that the Repo Rate hike has been paused only for this meeting. “It’s a pause, not a pivot”, said Governor Das.

The real estate sector, on expected lines, reacted positively to RBI’s decision. 

Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said “RBI’s decision to keep the repo rate stable was a surprise move but has been done with the view of the withdrawal of accommodation while keeping a close eye on inflation. The move is highly encouraging for the infrastructure, housing, and other real estate segments as this decision, for now, allays fears of a further increase in financial burden on developers and borrowers. With the borrowing cost expected to remain largely stable, the overall growth momentum will get a fresh impetus. RBI has taken an extremely balanced view of containing inflation and managing external volatilities over the past year. With this rate pause, it has been reaffirmed that India will continue to remain a bright spot in the global economy, despite the external challenges”.

Boman Irani, President-Elect, CREDAI National, “We laud the RBI for maintaining the repo rate, in a move that is bound to go a long way in sustaining the sales momentum that we’ve witnessed in the residential segment. Given the potential adverse impact of a hike in repo rate and its ripple effect on both Housing demand and supply, we, at CREDAI, are extremely pleased and welcome the central bank’s decision. This move would provide a further boost for the affordable and mid-income housing segments, in particular. Coupled with the Central Government also hiking its outlay for the PMAY program during this year’s Budget, we expect the demand for affordable housing to grow in the upcoming quarters.”

Dhruv Agarwala, Group CEO, Housing.com, PropTiger.com & Makaan.com, said “The RBI move to leave the repo rate unchanged at 6.5% in its first bi-monthly policy for fiscal 2023-24 comes as a major relief for the industry in general and homebuyers in particular. If the RBI had gone for another rate hike, lending rates would have reached a record high level that may have impacted the positive buyer sentiment the housing sector has witnessed in the past one year. By hitting a pause button in a surprise move, the banking regulator has signalled it is willing to support growth even as it tackles concerns over inflation”.

Abhishek Kapoor, Chief Executive Officer, Puravankara said“The Reserve Bank of India’s (RBI) decision to not increase the repo rate is a welcome move. While the demand continues to be strong as of today, the pause will reaffirm the interest of homebuyers in the affordable and mid-segment categories. While the rate hikes have not affected demand sentiments so far, today’s decision will further help boost demand in real estate which is the growth engine of the economy.”

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