- By Aditya Pratap Singh
- Wed, 04 Dec 2024 10:56 AM (IST)
- Source:JND
RBI MPC Meeting Update: The Reserve Bank of India’s (RBI) three-day bi-monthly Monetary Policy Committee meeting began on Wednesday to decide the interest rates in India. The meeting will conclude on Friday. i.e. November 6, with the RBI Governor Shaktikanta Das's announcement of the MPC decision at 10 am.
Although most analysts anticipate the RBI’s rate-setting committee will keep the main repo rate steady, the RBI governor’s challenge is to contain inflation and provide a minimal boost in liquidity for growth.
Industry Expectations
Atul Monga, CEO of Basic Home Loan, expects RBI to keep the repo rate unchanged to support economic growth considering the present global economic condition.
“We expect the RBI to keep the repo rate unchanged at 6.5%, to balance inflation and support economic growth. Global economic conditions, particularly the new regime in the US following the elections and the situation in the Eurozone, are expected to significantly influence the RBI’s decision. If the central banks in other major economies adopt tighter monetary policies, the RBI may opt for a ‘neutral’ stance, citing geopolitical uncertainties as a key factor," said Atul Monga.
Also Read: RBI Monetary Policy Meeting December 2024: MPC Meeting Begins Today To Decide Interest Rate; Details
"With the repo rate remaining unchanged, housing demand is expected to remain steady, especially in the mid-range and luxury segments, supported by stable interest rates. Both developers and home buyers can benefit from predictability in borrowing costs," he said further.
Manoj Gaur, CMD of Gaur Group and President of CREDAI NCR demands to maintain the status quo on the repo rate.
"If the RBI maintains the status quo on the repo rate, it will be encouraging for the real estate sector. It will signal stability in the market and boost confidence among both buyers and developers. The RBI is hinting at a potential rate cut in the future, which could provide relief to home buyers. However, the affordable housing segment remains a concern, and we hope the RBI will pay greater attention to this area," said Manoj Gaur
Neeraj Kansal, CEO and Founder of Crack Academy says, "The Monetary Policy Committee's meeting holds significant importance in driving the nation's economic growth. Amid rising inflation, there is an equal need to provide relief to the public. While a reduction in the repo rate may seem challenging, maintaining it at current levels could enable the RBI to strengthen economic stability. This approach would not only bring relief to home loan borrowers but also benefit millions of students relying on education loans, ensuring widespread financial support."
"In the last MPC meeting in October, RBI had held rates but changed its stance to “neutral” led by cooling of inflation at that point. The recent data points on higher inflation of 6.21% in Oct & lower GDP growth of 5.4% in Q2 puts RBI in a tricky position, acting as a dampener to hopes of a rate cut. While pressure would mount on the RBI to cut rates to boost growth, the recent higher inflation along with the weakening of the INR against the dollar over the last couple of weeks would also play on the MPC’s mind and may hold them back. The benchmark 10-year G-sec though has gone down by ~10 bps since the GDP data, signalling that a section of the market believes that the RBI may just give in on the rate cut. It will be interesting to see RBI yet again doing the balancing act this week," said Suresh Darak, Founder, Bondbazaar.