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The RBI’s move to cut the repo rate by 25 basis points to 6.25 per cent is expected to help improve buyer sentiment in the housing sector, according to industry players.
Reacting to the RBI’s move to cut interest rates, Shishir Baijal, Chairman and Managing Director, Knight Frank India, said: “A 25 bps cut in policy rate is encouraging and signals well for the real estate sector. We do hope that the transmission of the rate cut is efficient and banks pass on the benefit to customers in similar magnitude.”
Confidence boosterSurendra Hiranandani, Chairman and Managing Director, House of Hiranandani, said: “The new governor’s move to cut rates by 25 bps comes on the back of a favourable monsoon that has helped stabilise food prices and inflation.
“This will infuse confidence in the system, thereby providing a boost to not only the real estate sector, but also the overall economy ahead of the crucial festive season.
“This will not result in a significant rise in demand for credit from the corporate sector immediately, but can drive down the cost of borrowings for banks and give them some incentive to drop lending rates, thereby giving existing borrowers a much-needed breather,” he explained.
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