RBI Monetary Policy – Comment from Mr.Surendra Hiranandani, Chairman and Managing Director, House of Hiranandani

Imperative for banks to reduce the lending rates immediately to reap benefits

Mr. Surendra Hiranandani, Chairman, and Managing Director, House of Hiranandani

A repo rate cut would have been welcome as it would have lifted industry sentiments. The growth trajectory of the real estate sector will depend on the successive transmission of rate cuts to the end consumers and translate into lower EMIs. Lower interest rates will also bring back fence-sitters who were waiting for the perfect opportunity to invest in their dream home. However, it has been observed that, despite the reduction in repo rates by the RBI in the previous reviews, it did not have any significant impact on lending rates. Going forward, it is imperative for banks to reduce the lending rates and ensure that the home loan borrowers reap the benefits of this move. The real estate sector is one of the few sectors which have the potential to kick start a sluggish economy. Going forward, we request the government to take the necessary steps to create housing demand across segments. We look forward to the Government’s constant support to help bring the real estate industry back to the global forefront. We hope to see a positive upturn in the real sector soon.

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