Home loan rates to continue at historic lows as RBI keeps repo rate unchanged
Noida: The RBI’s Monetary Policy Committee has decided to keep the key rates unchanged, thereby meaning the repo rate will remain at its current level of 4 percent and the reverse repo rate will remain at 3.35 percent.
After the bi-monthly review of the monetary policy, RBI Governor Shaktikanta Das today said the policy stance will remain to be ‘accommodative. This means the current home-loan interest rates will remain at their historic lows.
"Had it not been for the pandemic, the RBI could have taken a different stance for the benchmark rates today. However, the spectre of inflation in the country looms too large, prompting the RBI - as expected - to keep the repo rates unchanged at 4% and reverse repo rate at 3.35%. This is the seventh consecutive time that the RBI has maintained status quo, largely on account of the ongoing COVID-19 uncertainties," said Anuj Puri, Chairman - ANAROCK Property Consultants.
"On widely expected lines, the RBI on August 6 decided to maintain a status quo on key policy rates. The decision of the RBI MPC augurs well for the real estate industry in general and home buyers in particular, since the record low interest rate regime would enable a large number of buyers to invest in property. Since homebuyer sentiment has already improved in recent times, based on an increase in housing affordability in India, the RBI move will prompt buyers and investors to put their money in secured assets like real estate. The extraordinary liquidity support the RBI has provided to the economy in the aftermath of the coronavirus pandemic is highly commendable," said Vikas Wadhawan, Group CFO, Housing.com, Makaan.com and Proptiger.com.