Expected, considering inflation, crude prices

Deepak Kapoor, President, Credai Western UP, said, “It was an expected move from RBI to hold back the interest rates considering inflation and crude oil prices. Also in the last policy review the rates were reduced by 25 basis points. It is also expected that country would receive above normal monsoon which might soften inflation in coming days therefore maintaining status quo was anticipated. Although even a small cut in interest rates would have helped real estate sector in a big way but we are eyeing for healthier market conditions ahead. Slashing down the policy rates at this moment would have had a remarkable impact in boosting the realty sector and facilitating growth. Moreover, RBI should compel banks to pass on the benefit of reduced rates to borrowers as only few banks have reduced the interest rates”.