Stable housing prices, a cut in stamp duty in some states, and an inclination to own homes has revived housing demand from the fourth quarter of 2020.A stable repo rate will ensure banks keep their home loans rates low. "This will go a long way in rekindling momentum in the housing market. On his expectations from the MPC meeting, Ramesh Nair, Chief Executive Officer (CEO), India and Managing Director, Market Development, Asia Colliers, too anticipates that the repo rate will remain unchanged in the upcoming monetary committee meeting. To my mind inflation is essentially on account of the supply chain disruption and once this disruption gets addressed, inflation may not really raise its head, as much as it was seen at the time of the last policy decision," he had said. So, I think perhaps, a rate may not really go up, but commentary could talk about inflation. SBI Chairman Dinesh Khara had recently said that it looks like that interest rate should remain as it is. We see the risks of a rate hike (base case in 1Q22) as skewed to delay as growth concerns might dominate given that inflation will likely track below RBI’s forecast," it said. We will remain watchful of the RBI’s tone and guidance regarding the likely path of policy normalisation. "We opine headline CPI to remain range-bound around the 5 per cent mark in the current fiscal year, even as core inflation remains sticky and pressures emanate from higher global commodity prices. The decision taken at the meeting would be announced by Governor Shaktikanta Das on October 8.Ī Morgan Stanley research report expects the RBI to continue to keep rates on hold and retain its accommodative stance in the upcoming policy review. The RBI Governor-headed six-member Monetary Policy Committee (MPC) is scheduled to meet for three days from October 6. Since then, the RBI has refrained from taking any action on interest rates. The Reserve Bank had last cut the repo rate by 40 basis points in May 2020 to 4 per cent to spur demand in the COVID-hit economy. RBI may again opt for status quo on key policy rate next week, say expertsĪmid rising global commodity prices and the need to contain inflation at home, the Reserve Bank is likely to maintain the status quo on interest rates for the eighth time in a row in its upcoming bi-monthly monetary policy review later in the week, according to experts.
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