Still overcoming from the punch of the demonization drive, the real estate sector in India faced another disappointment when the RBI governor Urjit Patel kept the key policy rate unchanged at 6.25% in his third policy review. According to real estate stakeholders, the reduced repo rate would have compelled the banks to cut the lending rates further. After the demonization, many banks have already started reducing the home loan rates. The State Bank of India (SBI) had reduced its home loan rates from 9.1% to 8.6% for women and 8.65% for other buyers where as Bank of Baroda (BoB) is offering home loans at 8.35%. Some known faces of the realty world believe that the in near future, the RBI as well as the Finance Ministry will make certain moves to provide the benefit to the consumers.
"Reducing the repo rate would have added to the benefits of realtors and property buyers"