Blitz Bureau
NEW DELHI: The Reserve Bank of India (RBI) decision to keep repo rates unchanged at 6.5 per cent for the ninth consecutive time aligns well with the Government’s indexation benefits, industry experts said on August 8, adding that this will further help aspiring homebuyers.
RBI Governor Shaktikanta Das said that the Monetary Policy Committee (MPC) has decided to keep the repo rate unchanged as inflation has risen above 5 per cent, beyond the targeted level of 4 per cent.
Anuj Puri, Chairman of Anarock Group, said that the RBI’s decision sets a positive tone for the housing industry. “With interest rates staying steady, EMIs will remain manageable for current and potential homeowners, potentially leading to increased home sales – particularly in the price-sensitive affordable segment,” he said.
The earlier announcement regarding indexation also brings tax advantages for property investors, as it permits adjustments to the purchase price keeping inflation in mind, reducing capital gains tax burdens upon property sale. According to Madhavi Arora, lead economist at Emkay Global Financial Services, the RBI is likely to be on wait-and-watch mode for assessing multiple macro forces.
“We understand that shifting debates on global narratives require the RBI to be flexible. However, the volatility in India FX and rates has been manageable amid the recent global market turmoil, giving flexibility to the RBI to stay focused on domestic inflation and financial sector risk management,” said Arora.
