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Budget 2023
Budget 2023

Rate cut to boost housing demand in festive season; banks must pass on benefit to borrowers: Experts

'It is a significant and welcome move by the Reserve Bank of India (RBI)... to boost the credit flow and spur the economic growth of the country,' said Confederation of Real Estate Developers Association of India (Credai) National Chairman, Jaxay Shah.

The Reserve Bank's decision to cut key policy rate by 25 basis points will boost consumer sentiment as well as housing sales during the ongoing festive season which is a crucial period for the realty sector, industry experts said on Friday. With this cut, repo rate, at which it lends to the system, will now come down to 5.15 per cent.

The central bank must now ensure effective transmission of rate cuts, announced on Friday as well as earlier, to home loan borrowers, they said.

"It is a significant and welcome move by the Reserve Bank of India (RBI)... to boost the credit flow and spur the economic growth of the country," said Confederation of Real Estate Developers Association of India (Credai) National Chairman, Jaxay Shah.

"We hope that the benefit of this reduction is passed on to the home buyers by the banks/financial institutions.