Realtors say RBI decisions to boost liquidity; seek quick transmission

The RBI's decision to cut key rates and give three-month moratorium on all term loans will boost liquidity and ease debt pressure, provided banks pass on these benefits to customers quickly, according to property developers and consultants.

The RBI cut repo rate to 4.4 per cent and reduced the cash reserve ratio maintained by the bank by 100 basis points. The reverse repo rate was cut by 90 bps to 4 per cent.

Commenting on the development, CREDAI Chairman Jaxay Shah said, "The economy is going through hard times. The decisions by RBI Governor today is a much awaited comprehensive package to ease the burden of all financial classes across the nation."
The moratorium of three months of EMIs on all outstanding loans will be a major relief to all concerned stakeholders,
Anshuman Magazine, Chairman & CEO - India, South East Asia, Middle East & Africa said, "RBI is in a mission mode to nurture the market, preserve financial stability and the timing here is crucial."
Dhruv Agarwala, the CEO of PropTiger and Housing.com, said, "This will go a long way in reducing the massive pain being felt in all parts of the economy and especially in the rate sensitive real estate sector. The RBI has shown its decisive intent to mitigate what could have been a severe economic fallout of the coronavirus pandemic."
Gaurs Group MD Manoj Gaur said the home loan rates should fall by 90-110 basis point. "For the sake of Indian economy, RBI must ensure proper transmission."
Rohit Gera, MD, Gera Developments, said, "The reduction in interest rates will ease the burden on individuals and businesses as would the moratorium."
Mumbai-based Ekta World Chairman Ashok Mohanani said, "Today's announcement infused some assurance in the mind of the panicked citizens that the economy will revive back in the short run."
Bhutani Infra CEO Ashish Bhutani said:"From reduction of rates to infusion of liquidity to moratorium on loan repayment, the measures will help both individuals & organizations to cope up with the current situation."
Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory said,"We believe that the banks will finally be passing the benefits of the current & previous rate cuts to the customers. This will reduce the borrowing cost for the home-seeker significantly and have a positive impact on real estate."
Poddar Housing MD Rohit Poddar said, "We welcome these measures as without them the economy will go into deflation."