RBI's rate hike to help sustain liquidity in system: Omaxe

RBI has announced the First Quarter Review of Monetary Policy 2010-11 today. Commenting on the same, Mr. Rohtas Goel, CMD, Omaxe Ltd said, "The increase in Repo rate and Reverse Repo rate is a welcome step and is much in line of the expectation. Given the inflationary pressures it becomes imperative to take such monetary measures but RBI has been generous in keeping CRR rate constant, which will help maintaining a favorable volume of liquidity in the system"

"However, it will help the realty sector only if the current interest rates for retail loans are maintained. This is the fourth time that apex bank has increased the REPO rate and subsequently each time, the interest rates have also been increased.  The realty sector is reeling under paucity of funds, and prices have been showing an upward trend. We believe that any further increase in the interest rates may lead to downtrend in the over-all demand."