New Delhi, June 08, 2019: The rate cut of 25bps was imperative to induce liquidity in the Downward spiral economy on the back of all indicators showing slowdown like the peak unemployment rate, shrinking GDP rates, nose-diving auto sales numbers, etc. Since the CPI was well under 2.5% and recent crude prices dip, a higher rate cut would have been more cheerful for the markets. The stance change from neutral to accommodative by RBI indicates the cognizance about the current fragile business environment and we expect further rate cuts in times to come. Rate cuts shall enable affordability in terms of home loans and thus lowered EMI, lower GST, tax rebate for income up to Rs6.5 lakhs (including section 80C) for the middle class as per as interim budget. All these shall give some sales impetus to real estate.
Corporate Comm India(CCI Newswire)