RBI Monetary Policy February 2022 Announcement: Corporate India's reactions

 

RBI Monetary Policy reactions February 2022

 

Sandeep Runwal – President, NAREDCO Maharashtra and

Managing Director, Runwal Group

Sandeep Runwal – President, NAREDCO Maharashtra and Managing Director, Runwal Group | Runwalgroup.in

 

“In view of inflationary concerns, the Reserve Bank of India (RBI) has continued to maintain the status quo on key policy rates. It has taken a proactive stance to ensure liquidity. The MPC also maintained that the ‘accommodative’ stance will continue as long as needed. This will provide the required fuel for the growth of the economy along with the real estate industry, which is allied with several other sectors. As the industry is recovering from the impact of the 3rd wave of Covid, it is important to support growth and spending. By keeping the interest rates unchanged, RBI has clearly indicated that it is looking for sustainable growth and boosting consumer sentiments.”

Ramesh Nair, CEO, India & Managing Director, Market Development, Asia at Colliers.

Ramesh Nair, CEO, India and Managing Director, Market Development, Asia, Colliers

RBI continues to maintain an ‘accommodative’ stance keeping the repo rate unchanged yet again at 4% in its monetary policy meeting in Feb 2022. This support is needed for sustained recovery in economic growth. At a time, when the market was expecting a hike in reverse repo rate and change in stance of the Central Bank to ‘neutral’ to be a precursor to future rate hikes, the ‘status quo’ of the Bank comes as a breather for the real estate sector.  In the absence of the specific demand-side interventions from the Budget 2022-23, prospective homebuyers can continue to benefit from lower home loan interest rates which are here to stay for now.”

Sujan Hajra, Chief Economist and Executive Director, Anand Rathi Shares & Stock Brokers.

Sujan Hajra, Chief Economist and Executive Director, Anand Rathi Shares & Stock Brokers

“The RBI remained more concerned on growth versus inflation and thereby maintained all the policy rate unchanged. The monetary policy stance also remains accommodative. We think that the RBI had at least the space to do a symbolic 15 bps reverse repo hike so as to signal rate normalisation, commitment to be at the top of the inflationary situation and also keep the Indian monetary policy in alignment with the global trend. We expect the rate hike to start in the next MPC meeting. The stance of monetary policy, however, is likely to continue as accommodative.”

Amit Goyal, CEO, India Sotheby’s International Realty

Amit Goyal, CEO, India Sotheby’s International Realty

RBI Decision to maintain the status quo on policy rates is good news for home buyers. The historically low home loan interest rates will continue for some more time and keep the mood buoyant. The other welcome news is that the business outlook remains optimistic and real GDP is projected at 7.8% for next fiscal by the governor

Suren Goyal, Partner, RPS Group

Suren Goyal, Partner, RPS Group

The continuation of accommodative policy by RBI augurs well for the real estate sector. It is likely to boost demand and we hope the accommodative stance will continue for the next year or so.

Saransh Trehan, Managing Director, Trehan Group

Saransh Trehan, Managing Director, Trehan Group

After a disappointing budget from a real estate perspective, the status quo on policy rates was least expected to sustain revival of the real estate. The accommodative stance must continue for some time, because the prevailing interest rate of below 7% per annum on home loans is a major factor for home buyers while deciding to buy a home.

Vinit Dungarwal, Director, AMs Project Consultants Pvt. Ltd.

Vinit Dungarwal, Director, AMs Project Consultants Pvt. Ltd.



“By leaving the rates unchanged and continuing the accommodative stance MPC has sent out a clear signal that they are focused on the long-term growth of the economy. The projections also indicate that inflation is on a downward trajectory, which is another positive indicator. We welcome this move by RBI as it helps in holding the interest rates and sustaining the current growth momentum in the real estate sector. This move will help in improving affordability, lead to demand generation and have a multiplier effect on the overall economy.”

Aditya Kushwaha, CEO and Director, Axis Ecorp

Aditya Kushwaha, CEO and Director, Axis Ecorp

 

“MPC has decided to keep the key policy rates including repo rate, reverse repo rate, MSF rate unchanged. This clearly indicates RBI’s pro-growth stance, which is required in this post-pandemic phase. For a durable recovery, continued policy support is warranted and RBI has given a clear indication in this regard. Today’s policy action will continue to benefit the interest rate and have a positive impact on the real estate sector.”

Dr Vijay Kalantri, Chairman, MVIRDC World Trade Center Mumbai

We strongly feel that industry and investors will draw comfort from the bold decision of the RBI to support economic growth despite major central banks across the globe reversing their growth-supportive stance and rising global crude oil prices. We feel the RBI’s pro-growth policy stance is a second booster dose to strengthen economic recovery after the Union Government delivered a progressive budget. We feel the RBI’s move to allow more foreign investment in government bonds (by increasing cap on VRR route) will attract more liquidity into the bond market and control sharp rise in bond yield. We cannot let the 10-year bond yield to rise above 7% mark as it will increase borrowing cost for private companies and stifle the nascent economic recovery

R K Arora, Chairman, Supertech Ltd

We welcome the RBI stance to keep the repo rates unchanged at 4% and reverse repo rate at 3.35% for the tenth consecutive time. The unchanged repo rates will help in maintaining the low interest rate regime and this works well for home buyers planning to buy homes with help of home loans.