Response to Mr. Ravi Saund, JMS Buildtech
April 5 2016, 12.26 PM IST || Pocket News Alert
Indian monetary policy has been cautious till now—with good reason. With the repo rate cut by 25 % RBI has maintained its accommodative stance. It was quite up to the expectations of the industry and traders. The decision is in tune with developments in both international and domestic markets.
Lower cost of borrowing is bound to give a fillip to capital expenditure of companies and industries, which are struggling with cash flows and trying to manage their balance sheets. Sectors such as infrastructure, real estate and housing are expected to benefit from the rate cut.
It is actually a win-win situation for both the developer and the customer. The immediate benefit of a cut in lending rates is that the borrower’s loan eligibility increases. Also, a drop in lending rates means a reduction in EMIs which provides a relief to the customers. This move will increase the money supply in economy, economic growth and purchasing power of consumers.
Existing and potential home loan customers are delighted because it brings down their borrowing costs. This doesn't ensure that the existing inventory will be sold out but it will certainly lead to an increase in fresh calls.
April 5 2016, 12.26 PM IST || Pocket News Alert
Indian monetary policy has been cautious till now—with good reason. With the repo rate cut by 25 % RBI has maintained its accommodative stance. It was quite up to the expectations of the industry and traders. The decision is in tune with developments in both international and domestic markets.
Lower cost of borrowing is bound to give a fillip to capital expenditure of companies and industries, which are struggling with cash flows and trying to manage their balance sheets. Sectors such as infrastructure, real estate and housing are expected to benefit from the rate cut.
It is actually a win-win situation for both the developer and the customer. The immediate benefit of a cut in lending rates is that the borrower’s loan eligibility increases. Also, a drop in lending rates means a reduction in EMIs which provides a relief to the customers. This move will increase the money supply in economy, economic growth and purchasing power of consumers.
Existing and potential home loan customers are delighted because it brings down their borrowing costs. This doesn't ensure that the existing inventory will be sold out but it will certainly lead to an increase in fresh calls.
