Mumbai (Maharashtra) [India], February 7 (ANI): Real estate business leader Niranjan Hiranandani said affordable housing segment will get yet another boost with the reduction in repo rate by the RBI monetary policy committee.
Managing Director of Hiranandani Group, lauding the Budget and its massive tax relief, said that the Finance Minister gave a big boost by raising exemption limit.
“I think RBI’s now reduction is going to give the second big boost to the economy,” Hiranandani said.
“Affordable housing will be the most delighted because in the last one, one-and-a-half years, there was a setback to affordable housing because of the higher interest rate impact,” the real estate business leader told ANI.
“I think this reduction in (repo) rate will also begin a new beginning for affordable housing to take a second leap,” he said.
Elevated interest rates over the past five years has somewhat impacted the offtake in affordable housing. Loosening repo rates are expected to have a far-reaching effect for the real estate industry, which essentially is an interest rate sensitive space.
Talking to ANI soon after the RBI announced the 25 basis points reduction in repo rate, Hiranandani recalled how he had been demanding a reduction in interest rates for the last six months or so.
“We expected that the RBI should actually reduce it and we are very happy that RBI has finally conceded and consented to reduce it by 25 basis points.”
Terming repo rate reduction as a “revolutionary step” at a time when the inflation is under control, he said the combination of both are an “added incentive”.
Going ahead, he asserted that raising the economic growth to 7-8 per cent was necessary.
“It is my belief to spur the economy, which is now at over 6 per cent.” To take GDP growth towards 7-8 per cent, he said that the beginning of this repo reduction was necessary.
In his first monetary policy meeting since assuming the top post at RBI, Governor Sanjay Malhotra and the MPC unanimously decided this morning to reduce the policy rate by 25 basis points (bps) from 6.5 per cent to 6.25 per cent, in first such move in about 5 years.
Separately, CS Setty, Chairman, SBI, commenting on the RBI policy, said decision to start the easing cycle with a 25 basis points cut was “timely, contextual and also well communicated”.
“The RBI growth and inflation forecasts for FY26 clearly shows the delicate tradeoff between growth and inflation. The regulatory announcement on forward contract, reviewing trade settling cycle and addressing cyber security in banks and payment systems will ensure better price discovery, more broad basing of participants and ensuring trust in digital banking,” the SBI Chairman added in a brief statement. (ANI)
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