RBI misses chance to up housing demand by keeping repo rate steady: Credai

Realtors' apex body Credai on Wednesday said the RBI should have cut key interest rates to boost housing demand during the current festive season and demanded that the apex bank must consider lowering the repo rate in the next meeting.

The Reserve Bank of India (RBI) kept its key interest rate unchanged on Wednesday but took the first step towards a rate cut as it eased its relatively hawkish policy stance to 'neutral'.

Credai National President Boman Irani said, "As RBI remains cautious regarding potential inflationary pressures, the central bank's decision to keep the repo rate unchanged at 6.5 per cent - albeit with a revised neutral stance - seems somewhat like a missed opportunity, especially with the festive season around the corner".

A rate cut at this juncture would have provided the ideal boost to accelerate consumer demand across industries, he added.

Irani expects the central bank to cut rates in the next quarter.

Realtors' body Naredco President G Hari Babu suggested that the RBI should consider reducing rates in the next MPC meeting. "This will further stimulate economic growth, increase housing demand, and boost investment in the real estate sector.