Monetary Policy – RBI leaves lending rates unchanged. As expected

Monetary Policy – RBI leaves lending  rates unchanged. As expected

The Reserve Bank of India (RBI) kept its key interest rate unchanged at 6 per cent for the fourth time in succession at its final bi-monthly monetary policy review of the fiscal, citing concerns about the inflationary push by rising global crude oil prices.

 

Niranjan Hiranandani,
 President, NAREDCO

From a real estate perspective, I would focus on the RBI taking note of the rather slow transmission mechanism of rate actions by banks to to the customers, which is reflected in the mention about linking the base rate with the MCLR. This should help in terms of transmission of rate cuts to the customer, making the process more efficient.

RBI keeping the repo rate unchanged at 6 percent is in line with market expectations.

by Dr Niranjan Hiranandani is Founder & CMD, Hiranandani Communities.

He is also President, National Real Estate Development Council (NAREDCO)

February 07, 2018