The Reserve Bank of India (RBI) today announced reduction in key interest rates in the second bi-monthly monetary policy review.  As per expectations, repo and reverse repo rate reduced by 25 basis points. Revised repo and reverse repo rate stood at 7.25% and 6.25% respectively as compared with 7.50% and 6.50% earlier. On the other hand, the central bank has kept cash reserve ratio (CRR) and statutory liquidity ratio (SLR) unchanged at 4% and 21.5% respectively.

Commenting on RBI policy, Pradeep Jain, Chairman, Parsvnath Developers said, "We welcome the rate cut by RBI. We were expecting the move considering the realty sector has been struggling since last few quarters with increasing inventories and low demands. We hope that more banks will now pass on the benefit to customers thereby stimulating the overall demand. Such liberal moves coupled with policy reforms are necessary for the revival of the real estate sector in our country."

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