RBI Key Rate Cut By 25 Bps Will Benefits The Real Estate Customers

By Jay Dee Infra In Real Estate Info, Real Estate News No comments

RBI Key Rate Cut By 25 Bps Will Benefits The Real Estate Customers

The Recent move of RBI cutting rate by 25 bps can rejoice new home buyers with monetary benefits, the central bank has also enforced that benefits should pass to the end users.

The motive behind this rate cut is to smoothen liquidity to increase investments in productive sectors by successful lending.

RBI Rate cut

The RBI said that benchmark repo rate will be cut by 25 basis point to 6.5 percent, with generally monetary stances will remain accommodative, bankers says that present move will open the door for the real estate investors and automobile buyer.

The repo rate was lowest in five years and will assist the bank by reducing borrowing cost, and boost economic growth “since the beginning of accommodative cycle we have cut the rates by 150 basis points” says Raghuram Rajan.

Rajan also states on liquidity front, narrowing the policy rate corridor 0.50 from earlier 1 % results reverse repo rate which bank can park excess fund to the RBI.

The governor also welcome government move to change the RBI act and making monetary policy committee for further credibility.

Bank also announced to ease liquidity and maintaining cash reserve ratio reduced 90% to 95%, the panel rate( where banks borrow from central banks was cut by 75 basis point and reverse repo rate (the money which is parked in central bank) raised by 25 bps.