New Delhi: The decision of the Bank of India (RBI) reserve to keep the repo rate has not changed because the seventh time in a row has been praised by the industry and experts.
The Six-member Monetary Policy Committee (MPC) Reserve Bank in the latest policy decision to keep the key repo interest rates unchanged for 4 percent, with accommodating attitude, especially to support the growth of impact pandemic.
Experts believe that decisions in line with the unfinished agenda support Indian economic growth that deteriorated by the second covid wave.
“We welcome the support of MPC which is sustainable to maintain a revival of incomplete growth, because the drivers of inflation increase only do not come from soaring domestic demand,” N Sivaraman, the Implementing Director and CEO of the ICRA Group said.
“While MPC will most likely try to support growth as long as possible, it will refuse to allow inflation expectations from unhinging.
Therefore we believe the normalization of the policy is likely to begin in Q4 FY2022, after increasing vaccination is seen to increase domestic demand,” he added.
Praising the decision, the Chairperson of the Bank of Nate India (SBI) Dinesh Khara called the move as a pragmatic that attacked the fine balance between “attitudes and strategies”.
“While the policy attitude continues to be accommodating to continue to support growth, the strategy of recalibration of careful liquidity management is clearly indicated by the Roll VRRR (Repo Repo Variable),” said Khara news agency PTI.
Zarin Daruwala’s foreign lender standards also told PTI that the RBI view was “pragmatic”, given the higher inflation mold and sufficient system liquidity.
Meanwhile, India Inc.
said that low interest rates would provide encouragement for business and.
Consumer confidence.
“The continuation of accommodating attitudes to revive and maintain the path of economic growth amid the impact of Covid-19 will increase the trust of bus iness and consumers.
Encourage the RBI has maintained projections for GDP growth at 9.5 percent for FY2022 at a time that is difficult to be caused by a pandemic,” said PhDCCI President Sanjay Aggarwal told PTI.
In a statement, Assocham said that full credit must be given to the RBI to prioritize growth and maintain an accommodating attitude at the policy level.
“The hope that inflation must be moderate from the third quarter of fiscal years is now realistic because various supply-side problems will be resolved at that time.
In addition, with the Monsun take his steps, the positive impact on food inflation must be seen.” By maintaining a low interest rate regime in place With a four percent repo level that has not changed, the RBI and the government have been on the same page to lend full support to newborn growth, he added.
Similarly, the Real Estate Industry welcomed the RBI’s decision and said that low interest rates would increase the sentiment of home purchases and encourage demand especially during the upcoming festival season.
However, builders also demand that steps must be taken to increase liquidity in the real estate sector.
Naredco President Niranjan Hiranandani told PTI that low interest rates will add home to purchase sentiment and facilitate financial pillows to record agreements in the background of the celebration.
“Also, if the regulator can increase credit supply to jammed projects through allowing more Swamih funds; it will be very helpful in raising the old real estate market and make sure to send customers,” he added.
(With input from PTI)