New Delhi ,
The Central Bank’s decision to maintain status quo on the repo rate is in line with industry expectations and shows a composed
approach it wants to follow till signs of long term economic stability emerge. RBI’s stance comes in the backdrop of important global and domestic macro-economic developments such as rupee stabilizing against dollar, declining crude oil prices, benign inflation, and moderation in economic growth as it would want to closely watch the movements of these important indicators for another quarter.
With sales and new launches in Jan-Sep period on an upward trend, the residential segment is definitely showing strong signs of recovery. While back-to-back rate hikes in June and August had impacted buyers’ sentiments in the interim, maintaining the status quo on policy rate in October and in today’s policy announcement will reinforce the confidence of homebuyers and they will be encouraged to go ahead with their plans to buy house. Overall, this is going to have a positive impact on the housing market and we expect better sales and launches on the back of improved economic scenario.