The Reserve Bank of India kept key interest rate unchanged in the third monetary policy review. The RBI status quo was widely anticipated by the market participants. Repo and reverse rates stood at 7.25% and 6.25% respectively. At the same time, cash reserve ratio (CRR) and statutory liquidity ratio (SLR) retained at 4% and 21.5% respectively.
Commenting on the monetary policy announcement, Kamal Khetan, CMD, Sunteck Realty said, ''RBI’s move to keep the repo rate unchanged was an expected one considering the recent rate cuts. However, several measures like increase in bank lending to productive sectors & foreign portfolio investors being allowed to invest in G-secs after their investment limits are utilized signal the central bank’s pro-activeness to mobilize the Indian economy.
With CAD & inflation targets well within control & GDP estimates of 7.6%, the Indian economy seems headed for a good financial year ahead. We would expect Banks to reduce home loan rates further in this fiscal and encourage the fence sitter to take a decision to give a much needed boost to the Real Estate sector.''
Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.