With capability utilisation at the moment working greater than the long-term pattern, the central financial institution does have the bandwidth to look by way of the present improve in meals costs, says SBI Chairman Dinesh Khara.
| Photo Credit: EMMANUAL YOGINI
State Bank of India (SBI) Chairman Dinesh Khara mentioned the RBI policy communication was nuanced, and rightly exercised warning on the inflation trajectory given the present leap in vegetable costs.
“With capacity utilisation currently running higher than the long-term trend, the central bank does have the bandwidth to look through the current increase in food prices,” he mentioned in his feedback on the financial policy.
Ashu Khullar, CEO, Citi Inda, mentioned, “RBI’s status-quo policy with a balanced rhetoric around it, is likely to ease any market fears of a knee-jerk monetary policy reaction to the vegetable price-led spike in near-term inflation.”
“At the same time, the RBI’s views on resilience of the domestic growth outlook in a challenging global environment, is comforting. We would expect the stability in the policy rates to continue for a longish period, which would support both the growth and inflation objectives,” mentioned Mr. Khullar
Rajiv Agarwal, MD & CEO, Essar Ports mentioned, “The MPC’s dedication works to harmonise inflation with a 4% objective. Demonstrating prudence, the RBI retained the repo rate at 6.5%, upholding stability while envisioning a steady 6.5% growth for FY24 despite inherent uncertainties. We hope to see reduction in rates in months to come.”
Ankush Kaul, Chief Business Officer, Ambience Group mentioned, “The decision is welcome news for prospective homebuyers who plan to apply for home loans in the near future. The current momentum in housing sales, which have shown spectacular increase in the first half of 2023, is anticipated to be sustained by the unaltered repo rate.”
“The expectation for steady repo rate is encouraging for people looking to take home loans to buy their first home because most banks’ interest rates are expected to stay in the single digits,” he added
“The Reserve Bank of India’s decision to maintain the status quo for the second time is a welcome move and in line with expectations. This affirms the view that interest rates will only have one direction, which is downwards. This is a big positive for home buyers as they know that their EMIs down the line will only decrease further,” mentioned Garvit Tiwari, Director & Co-Founder , InfraMantra
Shashank Mewada, CFO, Homesfy Realty Ltd. mentioned, “The decision to keep the repo rate unchanged once more reflects a cautious approach by the RBI to combat inflation in the nation. While some might have anticipated a shift, it seems the authorities are carefully balancing the need to encourage borrowing and investment.”
“This consistent stance on the repo rate could stabilise the markets, instilling confidence among investors, especially since real estate is the most sought-after investment. As we navigate these times, the stable repo rate acts as a steady hand, guiding us through the waves of monetary intricacies,” he added.
