Credai: RBI misses chance to boost housing demand by keeping repo rate unchanged amid festive season

The Confederation of Real Estate Developers' Associations of India (Credai) on Wednesday expressed disappointment over the Reserve Bank of India’s decision to keep the repo rate unchanged at 6.5%, stating it missed a key opportunity to boost housing demand during the current festive season. Credai urged the RBI to consider lowering the rate in its next Monetary Policy Committee (MPC) meeting.

The RBI held its key interest rate steady but adopted a more neutral policy stance, signaling a potential shift towards rate cuts in the near future. Credai National President Boman Irani remarked, "While the RBI remains cautious about inflationary pressures, keeping the repo rate unchanged during the festive season feels like a missed opportunity. A rate cut now would have been an ideal move to stimulate consumer demand across sectors."

Irani also expressed hope that the RBI will opt for a rate reduction in the next quarter, which would help bolster housing demand.

National Real Estate Development Council (Naredco) President G Hari Babu echoed similar sentiments, emphasizing that a future rate cut would stimulate economic growth, increase housing demand, and boost investment in the real estate sector.