New Delhi, December 06, 2017: “We are not surprised at the position adopted by the RBI. Keeping in mind the rising rate of inflation and global head winds, RBI has decided to adopt a cautious stand. Repo rate—the rate at which the central bank lends to banks has been kept unchanged at 6%. This is consistent with the RBI’s stand this year. The only time RBI cut rates this year was in August, 2017 by 25 basis points (0.25 per cent). This means home loans will not reduce further, which does not do much for the real estate sector. A rate cut would have helped the economy but inflation also has to be taken into account. RBI has estimated inflation to be in the range of 4.3-4.7 per cent for Q3 and Q4 respectively. Considering these factors, we believe the RBI has taken the right position.” said Sachin Sandhir.
Corporate Comm India(CCI Newswire)