Realty developers disappointed with RBI policy

Pan holding of rates

Real estate developers, who are battling low home sales and high cost of capital, say they are disappointed over holding of rates by the central bank.

In today's policy announcement, the Reserve Bank of India has cut cash reserve ratio by 25 basis points while keeping the key rates unchanged.

"The cut in will release Rs 17,500 crore into the system. It will fuel inflationary tendencies in the system and not cutting of the rates. It will release more money into the system but better will be lowering of rates," said Rajeev Talwar, executive director, DLF Ltd.

"There is little disappointment. Let us hope for the best in the next policy," Talwar said.

Added Niranjan Hiranandani, managing director of and president, Indian Merchants Chamber :"Obviously inflation is a major concern of RBI. But keeping rates high does not seem to be working, given that the year-on-year WPI-based inflation rate for August 2012 was 7.5% and that for September 2012 it increased to 7.8 per cent. The RBI now needs to think in line with the Government of India’s policy and encourage investment on the supply side as a tool for containing inflation."

image
Business Standard
177 22
Business Standard

Realty developers disappointed with RBI policy

Pan holding of rates

Raghavendra Kamath  |  Mumbai 



Real estate developers, who are battling low home sales and high cost of capital, say they are disappointed over holding of rates by the central bank.

In today's policy announcement, the Reserve Bank of India has cut cash reserve ratio by 25 basis points while keeping the key rates unchanged.

"The cut in will release Rs 17,500 crore into the system. It will fuel inflationary tendencies in the system and not cutting of the rates. It will release more money into the system but better will be lowering of rates," said Rajeev Talwar, executive director, DLF Ltd.

"There is little disappointment. Let us hope for the best in the next policy," Talwar said.



Added Niranjan Hiranandani, managing director of and president, Indian Merchants Chamber :"Obviously inflation is a major concern of RBI. But keeping rates high does not seem to be working, given that the year-on-year WPI-based inflation rate for August 2012 was 7.5% and that for September 2012 it increased to 7.8 per cent. The RBI now needs to think in line with the Government of India’s policy and encourage investment on the supply side as a tool for containing inflation."

RECOMMENDED FOR YOU

Realty developers disappointed with RBI policy

Pan holding of rates

Real estate developers, who are battling low home sales and high cost of capital, say they are disappointed over holding of rates by the central bank.

Real estate developers, who are battling low home sales and high cost of capital, say they are disappointed over holding of rates by the central bank.

In today's policy announcement, the Reserve Bank of India has cut cash reserve ratio by 25 basis points while keeping the key rates unchanged.

"The cut in will release Rs 17,500 crore into the system. It will fuel inflationary tendencies in the system and not cutting of the rates. It will release more money into the system but better will be lowering of rates," said Rajeev Talwar, executive director, DLF Ltd.

"There is little disappointment. Let us hope for the best in the next policy," Talwar said.

Added Niranjan Hiranandani, managing director of and president, Indian Merchants Chamber :"Obviously inflation is a major concern of RBI. But keeping rates high does not seem to be working, given that the year-on-year WPI-based inflation rate for August 2012 was 7.5% and that for September 2012 it increased to 7.8 per cent. The RBI now needs to think in line with the Government of India’s policy and encourage investment on the supply side as a tool for containing inflation."

image
Business Standard
177 22
Widgets Magazine

More News

Widgets Magazine
Widgets Magazine

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard