- By Aditya Pratap Singh
- Thu, 08 Aug 2024 10:15 AM (IST)
- Source:JND
RBI Monetary Policy: Shaktikanta Das, the Reserve Bank of India Governor, on Thursday, announced to keep the repo rate unchanged at 6.5%. The 6-member rate-setting panel held its third bi-monthly policy meeting for FY25 from August 6 to August 8 and decided to keep the repo rate unchanged by 4:2 votes. For the past 18 months, the Reserve Bank Of India has kept the lending rate unchanged.
GDP growth projection
RBI governor while addressing the media after the Monetary Policy Meeting, retained the forecast for real GDP growth for FY25 at 7.2%. Meanwhile, the central bank has revised the real GDP growth projection for Q1FY25 to 7.1%, which was 7.3% earlier. However, The real GDP forecast for Q2FY25, Q3FY25, and Q4FY25 has not been revised and retained at 7.2% 7.3%, and 7.4% respectively. The governor also projected GDP growth rate for Q1FY26 at 7.2%.
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Inflation rate projection: The RBI MPC maintains the CPI inflation forecast at 4.5% for FY25. The RBI has projected an inflation rate of 4.4% for Q1FY26.
The RBI's decision comes as a relief for homebuyers and lenders as they don't have to pay extra on their EMIs.
"The Reserve Bank of India's (RBI) decision to keep the repo rate unchanged carries significant implications for the home loan market. Following the budget, the Monetary Policy Committee's (MPC) announcement has provided much-needed stability, offering relief to homeowners. The steady rates reflect a positive sentiment in the real estate and lending sectors, presenting an opportunity for lenders to boost their credit outflow to homebuyers," said Atul Monga, Co-Founder and CEO of Basic Home Loan.
Jyoti Prakash Gadia, Managing Director at Resurgent India said the the move to keep the repo rate unchanged is on the expectation line.
"On expected lines, the RBI has chosen to keep the repo rate unchanged driven by the concerns arising out of the uneven monsoon impacting agriculture production and sticky food prices," said Jyoti Prakash.
"In addition, the issues relating to the geopolitical crisis gaining new dimension have also weighed heavily in favor of maintaining a status quo at this stage despite a perceptible check and on inflation," he added.
Dr. Sachin Chopda, MD of Pushpam Group said that RBI's move to keep the lending rate unchanged shows its dedication to economic stability.
"The Reserve Bank of India's decision to keep the repo rate at 6.5% for the ninth time shows its dedication to economic stability. This consistent policy provides certainty to the real estate sector. Stable interest rates mean predictable EMI payments for homebuyers, making property ownership more accessible. Developers can plan their projects confidently, leading to steady investments and job creation. While inflation remains a concern, the RBI's cautious approach balances growth and price stability, benefiting the real estate market," said Sachin Chopda.