Real estate sector disappointed over RBI's decision

Mumbai: The real estate sector has expressed its disappointment over RBI’s decision to kept its key policy rate unchanged. With RBI governor Raghuram Rajan stating that it would continue to remain ‘accommodative’, the industry is hoping for a rate cut during the latter part of this year.

“Dr Rajan’s decision to keep the repo rate unchanged at 6.5 per cent is disappointing, though not unexpected. Since demand in real estate and allied industries remains sluggish, a rate cut could create renewed interest in property purchase. But with the RBI stating its monetary policy stance is “accommodative”, one is hopeful a rate cut may be in the offing in the latter half of 2016,” said Vineet Relia, MD, SARE Homes.