Repo rate hike could have been avoided: Credai

The Confederation of Real Estate Developers’ Associations of India (Credai), the apex body for private real estate developers in India, has expressed surprise at the RBI decision to increase the repo rate by 25 basis points in its mid-quarter review of the monetary policy.

The step is only aimed at combating inflation but the focus on the industry growth has been ignored.

C. Sekhar Reddy, President, Credai-National , said: “In these challenging times, the RBI decision to raise the repo rate by 25 bps is tougher than expected and could have been avoided. In the coming months, we hope the bankers will come out with special schemes to attract the home buyers.”

He further added: “RBI should formulate a special policy for the housing industry with a focus on affordable housing. We hope that RBI will take cognizance of the industry requirement and will announce a rate cut, which will provide the needed trigger and encouragement to the sector.”

rishikumar.vundi@thehindu.co.in