Credai, Naredco urge RBI to cut rate in June policy

New Delhi: Realtors' bodies CREDAI and NAREDCO on Friday urged the RBI to reduce repo rate in the next monetary policy as lower interest rates on home loans will give a further fillip to demand for residential properties. The Reserve Bank of India on Friday kept the benchmark interest rates unchanged at 6.5 per cent for the seventh time in a row, citing concerns over food inflation in view of IMD's prediction of above normal maximum temperatures during April to June. The next meeting of the MPC is scheduled during June 5 to 7, 2024.

As the RBI has held key policy rates steady, the EMIs on home and auto loans are likely to remain stable for some more time. CREDAI President Boman Irani said, "The central bank maintains the repo rate at 6.5 per cent continuing a hawkish stance to keep inflation under check. However, with repo rates being an industry agnostic subject, we hope to see lower repo/interest rates later this year which will provide an impetus to not just real estate and housing demand but across industries - compounding sectoral and economic growth." NAREDCO National President G Hari Babu said the RBI's decision to maintain the repo rate underscores confidence in the nation's economic fundamentals, setting an encouraging tone for the new financial year. "While the current interest rate remains at its highest in four years, we urge the RBI to consider our appeal in its forthcoming review meeting," he said. Commenting on the central bank policy, real estate consultant Anarock Chairman Anuj Puri said the RBI's decision is on the expected lines.