RBI policy may cheer home loan borrowers

Cautious Optimism

♦ Recovery in property prices

♦ Rise in yields

♦ Investments increasing

♦ At this juncture, rate hike will hit growth prospects, say analysts

Mumbai: RBI is likely to maintain rate stability, offering promising prospects for borrowers, particularly those contemplating home loans, feel experts. The RBI governor will be addressing media, post three-day marathon meeting of MPC on Friday (Oct 06).

Kaushik Mehta, Founder & CEO of RUloans Distribution, says: “The forthcoming monetary policy meeting unfolds against a backdrop of cautious optimism. We anticipate the RBI will maintain rate stability, offering promising prospects for borrowers, particularly those contemplating home loans.” Deepak Agrawal, CIO, Debt, Kotak Mahindra Asset Management Company, says: “Inflation for H1 CY 2024 s expected to be in the band of 5-5.5 per cent and based on RBI Governor’s comment last month that ‘monetary policy should be forward looking’, we expect RBI to continue with pause in policy rates.”

Ramani Sastri, Chairman and MD, Sterling Developers, says, “the economy is looking robust with high investments across businesses in recent times. A recovery in property prices and rise in yields has made investment in residential properties attractive yet again and has been responsible for continued demand in the sector. The long-term benefits of owning a home have led to sustainable growth in the segment.

Hence, we expect a continuation of existing policy rates through 2023 and undoubtedly, a further reduction in interest rates in the near future would be preferred to bolster overall market confidence and make it more enticing for home buyers. With the ongoing festive season, we are already witnessing a surge in inquiries and we are expecting around 20 per cent growth compared to last year’s festive season.”