RBI policy meeting outcome - Comments

Mr.Sachin Sandhir, Global MD, Emerging Business, RICS post the RBI policy meeting.

Post cumulative 75 basis points rate cut since January 2015 , real estate sector has been arguing that lower interest rates are essential to push investments and revive stalled projects. Many segments of the economy especially Real Estate were expecting a deeper cut.

Mr.Sachin Sandhir, Global MD, Emerging Business, RICS said " A rate cut at this point in time would have further encouraged market sentiment and helped in growth of the sector. As many borrowers, especially home loan customers, were upset that banks which consistently raised rates in the tightening cycle are not showing the same zeal in lowering interest rates. Lenders, especially state owned banks, are cautious when it comes to lending as most of them are trying to recover bad loans while coping with a slump in profits."

Source : Equity Bulls

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