Reaction on RBI's bi-monthly monitoring Policy Review Meeting

As RBI Governor Mr.Urjit Patel yesterday maintained status quo on key rates at his bi-monthly monitoring policy review meeting. Here are the reactions from the industry leaders.
According to Deepak Kapoor, President, CREDAI Western UP "Real E?state sector was very much in need of a rate cut even if it was to be of 25-50 basis points. But, similar to last time, this policy review also did not brought any relief to the real estate sector as status quo was maintained. The realty sector is already under immense pressure and most of the projects in Noida & Greater Noida nearing completion and readying for possession soon. Therefore, in such a scenario, rate cut was the need of the hour to provide the much needed boost to the sector and to facilitating growth on the other hand".

According to Mr. Akshay Taneja, MD, TDI Infratech Ltd. "Maintaining status quo is a missed opportunity for real estate sector as reduction in rates might have improved the market scenario and triggered the demand and sales process. Still, in the longer run we foresee enough room for rate cuts which would spur growth in realty market. Real estate sector being a major contributor to India’s GDP needs enough backing from RBI to give out positive signals considering the present property rates and stagnant market conditions".

Mr. Prashant Tiwari, Chairman, Prateek Group, said "RBI’s announcement to keep the rates unchanged did not meet the expectations of current market scenario. Though, the unchanged rates were along the expected lines, we look forward for reduction in rates in future. Although government is taking corrective measures for economic growth and stability, there is a need to adopt a balanced approach considering the growth of key sectors like real estate. Monetary liberty is the need of the hour to gain back the trust of home buyers and investors. We are hopeful that next policy brings some good news for the sector".

Mr. Saurabh Jindal, Joint Managing Director, SVP Group, said "RBI has kept the rates unchanged and looks like it has adopted a wait and watch policy with respect to effects of demonetisation as well as the 7th pay commission as both these factors together might kick off inflation? in first quarter of 2017?. However, we were hoping that the rates will be brought down after they were kept unchanged last time as market sentiments needs to be revived. It has been long due and RBI should soon come with proper rate cuts to bring more positive trend in the real estate sector".