The RBI on Wednesday kept the repo rate unchanged for the 10th consecutive time, reflecting a prudent and balanced approach to monetary policy. This decision comes against the backdrop of easing inflation since December 2023, which has been hovering within the RBI’s target band.
“While a rate cut would have been favorable for the real estate sector, further boosting home buyer sentiment in conjunction with the upcoming festive season and reducing borrowing costs, the status quo is not expected to negatively impact the market’s current momentum. The change of stance to neutral is early indicator of the change in the interest rate policy going forward,” said Dr Samantak Das, Chief Economist and Head – Research and REIS, India, JLL.