We believe rates will ease in later half of year

“RBI has kept the rates unchanged and looks like it has adopted a wait and watch policy with respect to the monsoons as well 7^th pay commission as both these factors might spur demand and kick off inflation further. Consumer Price Index has already risen from central bank’s target of 5.1% to 5.7% which has made central bank to keep the policy rates stable. We believe that ease in rates would be given in the latter half of this year. Also it seems that focus remains on transmission of already reduced rates to the end users. Therefore banks should not refrain themselves from passing down the benefit of reduced rates to the borrowers. We hope that successor to Mr. Rajan would slash down rates which would eventually revive the market sentiments of a rate sensitive sector like real estate.”

Mr. Gaurav Gupta, General Secretary, CREDAI