“FOR THE THIRD CONSECUTIVE REVIEW, RBI GOVERNOR MAINTAINS STATUS QUO”: DR NIRANJAN HIRANANDANI

REDUCTION IN RATES WOULD HAVE BEEN ‘ADVANTAGE HOMEBUYER’

MUMBAI, 06 APRIL 2017: The Reserve Bank of India (RBI) kept the Repo
Rate (the short-term lending rate) at 6.25 per cent for the third
consecutive policy meeting in Mumbai on 6 April 2017. The Reverse Repo
rate has been increased to 6 per cent.

Commenting on this, Dr Niranjan Hiranandani, CMD Hiranandani Communities
and Founder-President, NAREDCO (West) said, “The RBI continues to
guard against any potential flare-up in inflation and an uncertain
global economic environment.”

Banks are flush with funds post demonetization, home loan rates are down
– given this situation, the (RBI Governor Urjit Patel was expected to
hold rates during this first monetary policy review in the new fiscal
year – which he did, said Dr Niranjan Hiranandani.

“The RBI Governor left  its key policy rate unchanged based on various
indicators which point to a modest improvement in microeconomic outlook.
It has also considered risks as being evenly balanced around inflation
trajectory, while it has considered the risk factor arising from
uncertainty about this year’s monsoon,” said Dr Niranjan
Hiranandani.

“For home seekers, if the RBI Governor had reduced the rates even by
0.25 bps, this might have added to positive sentiment and translated
into ‘advantage home buyer’. If the RBI had reduced rates, it would
have a direct impact on home loan interest rates and EMIs,” said Dr
Niranjan Hiranandani. “However, the RBI has maintained status quo,”
he said.

“When one considers home buyers, we look forward to home seekers
‘dream homes’ becoming a ‘reality’ – with home loans on offer
at lower interest rates,” Dr Niranjan Hiranandani concluded.

_~ DR NIRANJAN HIRANANDANI IS FOUNDER & MD, HIRANANDANI GROUP. HIS
RECENT INITIATIVE IS HIRANANDANI COMMUNITIES. HE IS THE FOUNDER AND
FIRST PRESIDENT (MAHARASHTRA), NATIONAL REAL ESTATE DEVELOPMENT COUNCIL
(NAREDCO), WHICH WORKS UNDER THE AEGIS OF MINISTRY OF HOUSING & URBAN
POVERTY ALLEVIATION, GOVERNMENT OF INDIA._

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