Rbi policy announcement – industry reactions

The RBI has kept the Repo Rate unchanged at a time when the market expected a 25-50 bps cut in light of the recent demonetization. Saraswat bank interest rates 2014 In the past it has been seen that commercial banks do not completely transmit the benefits of lower Repo Rate to customers. Interest rates on bank fixed deposits Since 2015, the RBI has cut Repo Rate by 150 bps, while banks have transmitted only a fraction of it – a cut of 26 bps in home loans to end users. Bank deposit interest rates calculator However, the impact of the recent demonetization has resulted in excess liquidity with banks as they are flush with funds.


Current bank interest rates This has prompted several banks to already reduce their term-deposit rates, which will bring down the cost of funds. Highest bank interest rates canada Therefore, we expect commercial banks to transmit the reduced cost of funds in the form of cheaper home loan rates to customers over the next few months.

The residential realty sector, which has been impacted by demonetization, would see some optimism driven by credit availability, which may result in higher number of enquiries in the coming months. Typical bank savings interest rates The residential market will see a pick-up in demand if the availability of home loan at lower rates is accompanied by rationalization in home prices. Icici bank interest rates for fixed deposits However, the extent to which banks pass on the rate cut would determine the actual magnitude of benefit to home buyers. South indian bank interest rates on fixed deposits 2014 Going forward we expect to see a rate revision in the Jan – Mar quarter in 2017

This move by RBI has come out against the market projections and a rate cut at present was of utmost importance, as the buyers were unsure about investing in the realty sector, post demonetisation. All bank interest rates on fixed deposits 2013 Demonetisation has allowed clarity for the buyers along with transparency in the sector, and the developers are well geared up for the end users to take the momentum forward. Bank of india fixed deposit interest rates 2014 calculator A rate cut in the present scenario could have pushed the banks to drop the interest rates further, the benefit of which would have been directly helpful for the buyers and the realty market.

For the economy, this decision is a highly thought off one, considering the short term effects of demonetisation. Lloyds bank interest rates on savings accounts The CPI inflation has been kept on check for three consecutive months, whereas the GVA came out to be lower in Q2. Icici bank fd interest rates 2014 But for the real estate sector, it is a setback, as already the sales had dropped significantly post demonetisation and the fraternity was expecting a repo rate cut or a drop in CRR, which would have ultimately benefitted the end users interested for investing in the property market.

The market and economy will take some time to balance the affects arising out of demonetisation and hence, the decision today by RBI stands as neutral. Rd bank interest rates Realty sector has just witnessed the exit of numerous secondary real estate buyers and a rate cut at this time would have helped the primary sales to grow. Bank fd interest rates in india 2013 As we are on the edge of this year end, all eyes will now fall upon the next year’s monetary review and the union budget, where much is again expected out of the government, especially for the Indian realty sector.

Maintaining status quo on the repo rate in RBI’s bi-monthly monetary policy is an unexpected move made by the new RBI Governor, Dr. Uco bank interest rates fixed deposits Urjit Patel. Bank deposit interest rates uk We were anticipating a rate cut of at least 25 bases points with changes like demonetisation being introduced by the government. Present bank interest rates on fixed deposits Nevertheless, the banks should now reduce the interest rates that will ensure that the demand for housing does not weaken. Idbi bank fd interest rates for senior citizens The accommodative approach will assure that the steps taken up by the government are in the right direction and propel the growth of the real estate sector.

The second bimonthly RBI Policy announcement of the newly appointed RBI Governor Mr. Bank fixed deposit interest rates in india 2013 Urjit Patel and the first after demonetization of old currency, maintaining status quo and keeping the repo rates unchanged at 6.25% is a surprising move especially post demonetization. RBI had already taken few steps including 100% incremental increase in Cash Reserve Ratio to withdraw excess liquidity from banks. Bank interest rates calculator india Also, the banks were flushed with funds following demonetization of old high value notes from November 9. Indian bank fd interest rates for senior citizens A rate cut at this stage would have helped in lowering the home loan interest rates making home buying a reality for most buyers who have been eagerly waiting for the rates to cut down. Best interest rates on bank deposits The Government had taken the lead in trying to implement policies that will boost growth of the real estate sector. Current bank interest rates uk In the same vein, RBI too should have looked at the real estate sector with new optimism.

With inflation rate and fiscal deficit under control, there was a general sense of expectation that RBI will reduce key policy rates. Bank deposit interest rates ireland A reduction could have had a positive impact for the real estate sector which is troubled by the increasing burden of development and borrowing costs. Axis bank fd interest rates for senior citizens However, we are confident this decision has been accommodative of the structural reforms initiated by the Government and support it in the creation of a sustained growth for the economy that will allow us to reap its benefit.

Although a rate cut would have been an idle move to energize the real estate sector but this seems very intelligent step because RBI had urged the banks to pass benefit of earlier cuts to common people. Bank interest rates list india I hope this move will remove the misconceptions from people who were talking about further price cut in real estate projects which is impossible. Allahabad bank interest rates on fixed deposits 2013 The RBI should seriously push the banks to pass on the previous benefits to customer. Bank home loan interest rates in india 2013 With such a huge deposit due to demonetization it was expected that the banks would lower down the interest rates. Saraswat bank fd interest rates 2013 After RERA proposed from next year now the sector desperately needs some big announcements from RBI and Government.

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