India 7 December 2016: As Reserve Bank of India Governor Mr. Urjit Ravindra Patel today maintained status quo on key rates at his bi-monthly monitoring policy review meeting.
Deepak Kapoor, President, CREDAI Western UP said, "As a sector we were not expecting any slash down in rates owing to the recent demonetisation step taken by the government. However, we were hoping that some relief might come that can help in providing boost to the sector going through struggling times. The risk of inflation which continues to be on an upper side is a reason that rates haven’t been reduced. However, real estate sector was very much in need of a rate cut even if it was to be of 25-50 basis point. But, similar to last time, this policy review also did not brought any relief to the real estate sector as status quo was maintained. The realty sector is already under immense pressure due to negative market sentiments and lost demand. Besides this circle rates in NCR parts like Noida, Greater Noida and Ghaziabad have been increased. Also Registry charges in Noida have gone up this year. Therefore, in such a scenario, rate cut was the need of the hour to provide the much needed boost to the sector and to facilitating growth on the other hand".
