ANAROCK's Comments on RBI’s Monetary Policy; NHB Gets Additional Infusion
RBI has left key rates unchanged in its latest policy meeting. Many market experts were expecting RBI to keep the rates unchanged and this is more in line with market expectations. Comments on RBI's decision by Anuj Puri, Chairman – ANAROCK Property Consultants follow...
Much along the expected lines, the RBI kept repo rate untouched at 4% and reverse repo rate at 3.35% amid a recent rise in retail consumer prices. The RBI was expected to do all it can to keep the inflation rates reined in for the duration.
However, the RBI announced several additional measures that will go on to accelerate the economy, enhance liquidity, improve flow of credit and deepen digital payment facilities, among others. Commendably, its allotment of INR 5,000 crore each to National Housing Bank and NABARD is a much-needed step for sectors including real estate reeling under the liquidity crisis.
It will help infuse capital into the HFCs and eventually provide relief to developers battling liquidity issues in COVID-19 times.