RBI keeps the repo rate constant. What does this mean for your EMI

Appreciating RBI’s MPC’s decision to keep key rates stable; ANAROCK Group Chairman Anuj Puri said, “With Omicron throwing a shadow of doubt across the world and in India, the RBI has decided to keep the repo rates unchanged at 4 per cent and the reverse repo rate at 3.35 per cent. This was expected . , and this is the ninth time in a row that the RBI has maintained status quo amidst the prevailing uncertainties. Unchanged repo rates will help maintain status quo on the current low interest rate regime for some more time. It works well for all home loan borrowers because environmental sustainability will continue.”

in line with the views of the ANAROCK expert; Lindsey Bernard Rodrigues, CEO and Co-Founder, Bennett & Bernard Company, said, “With the economy growing positive over the past few months, the RBI leaving the repo rate unchanged means that home buyers will continue to enjoy the benefits of record low interest. Rate regime. For any investor, this is a time of great opportunity and for the end customer. It is a great time to buy. People are looking for their homes and buying second homes in the context of the pandemic as their Will have a safe and secure home and will also be a good option for their primary residence. The green shoots of economic revival will be favorable in the short to medium term for the residential sector with prevailing low interest rates. Overall, we expect We are confident that the government will continue to take measures that strengthen the real estate sector and confirm the development of strong infrastructure.”

Welcome RBI’s decision to keep repo rate stable; Gautam Thakar, President, NAREDCO – Neral-Karjat Unit, said, “Keeping the repo rates unchanged is the best decision during such times to sustain the progress of economic growth. This also means that home loans will remain attractive and In turn, the momentum in real estate will continue. In short, this is a very positive decision for the Indian economy.”

Terming this RBI decision as an opportunity for new home buyers; Pritam Chivukula, Secretary, CREDAI MCHI (Maharashtra Chamber of Housing Industry) said, “We welcome the decision of RBI to continue our accommodative stance keeping in view the economic uncertainty due to the new COVID-19 variant Omicron. Low interest rates have been a key factor in the revival of demand in the real estate sector. The sector witnessed a good festive season on the back of rock-bottom interest rates on home loans along with festive offers from good developers. The markets are coming back and we feel this may be the last chance for home buyers to buy properties with lower interest rates, before RBI decides to hike it in its next policy announcement. A major challenge before the developers would be to keep the prices low due to the increase in the prices.

The RBI maintained its ‘accommodative’ stance with five members of the MPC voting in favor of the same. The repo rate, at which the RBI lends short-term money to banks, has been kept constant at 4 per cent, while the reverse repo rate, at which the RBI borrows from banks, remains unchanged at 3.35 per cent. Marginal Standing Facility (MSF) and Bank Rate also remained unchanged at 4.25 per cent.