MUMBAI, JANUARY 15, 2015: The Reserve Bank of India’s (RBI’s) decision to cut the repo rate by 25 basis points came as a sweet surprise on the auspicious occasion of Makar Sankranti, said Niranjan Hiranandani, MD, Hiranandani Constructions Pvt Ltd (HCPL). “While the RBI decision on a cut in the repo rate, which will have an impact on interest rates was expected, the timing was a pleasant surprise,” he added. It was hardly some days ago, in December 2014, that hopes of a rate cut had been belied – despite inflation figures having dropped. The expectation was that during the next review in February 2015, there could be a positive move from the RBI – but this was a pleasant surprise,” added Niranjan Hiranandani.
It needs to be seen in perspective of the past few months having been a period where property prices and raw material cost have both been on the upward move, said Niranjan Hiranandani. “In such a scenario, s been rising sharply, the RBI’s decision which will impact interest rates in form of reduction will be a respite for home seekers as also other stakeholders in real estate,” he said. On the aspect of 25 bps being a bit on the lower side, Niranjan Hiranandani said that he saw the present move as just the beginning. “Real estate developers and stakeholders can expect some more positive decisions from the RBI, which would boost the growth rate of the sector in the coming days,” added the MD, HCPL.
“This is a step in the right direction, and augurs well for real estate. While this will definitely be a ‘positive’ for the real estate sector, we also look forward to other ‘positive moves’ in 2015," concluded Niranjan Hiranandani, MD, HCPL.
KEY WORDS: Reserve Bank of India, RBI, decision, repo rate, 25 basis points, sweet surprise, Makar Sankranti, real estate industry, Niranjan Hiranandani, MD, HCPL.