The six-member Monetary Policy Committee (MPC), conducted by Reserve Bank of India (RBI) Governor Shaktikanta Das, maintained the repo rate at 4% and the reverse repo rate at 3.35 % unchanged.
The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) kept the repo rate at 4% for the eleventh successive time while holding an ‘accommodative stance,’ according to RBI Governor Shaktikanta Das on Friday.
ACCORDING TO THE CENTRAL BANK GOVERNOR, the MPC decided unanimously to continue the accommodating approach, and the reverse repo rate also remained steady at 3.35 percent.
On May 22, 2020, the RBI reduced its policy repo rate, or short-term lending rate, in an off-policy cycle to boost demand by decreasing interest rates to a historic low.
“In spite of pressures due to elevated levels of inflation amid the global turbulence caused mainly by the on-going Russia-Ukraine war, the RBI has maintained an accommodative stance to insulate the economy by keeping the inflation within the target range while supporting economic development. The RBI has ensured that the growth remains unhindered without any further deceleration. It has also attempted to normalise the liquidity corridor by introducing a long-awaited Standing Deposit Facility, which may absorb excess liquidity from the banks. It has also hinted at gradual and calibrated withdrawal of liquidity in a non-disruptive manner beginning this fiscal. On the real estate front, the crude prices – led inflation coupled with rising costs of material, increase in metro cess, ready reckoner and stamp duty rates, etc have a huge bearing on the real estate pricing. While the sector needs more liquidity, it equally needs a breather for rising costs.”
“We, at NAREDCO, have requested the Ministry of Housing & Urban Affairs to immediately look into the rising prices of the raw materials to curb the increased difficulties faced by realtors and home buyers, we are approaching the RERA authorities to consider this scenario as a Force Majeure and to allow the escalation in selling prices of the properties; so that the Government’s mission of ‘Housing for All’ to provide affordable housing fares well in these challenging times.”
Mr. Sandeep Runwal, President, NAREDCO Maharashtra on Policy Announcement, said that:
