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RBI Monetary Policy: Unchanged rates positive for home buyers, real estate sector

Though the competitive mortgage rates will provide long-term support to the real estate sector, overall economic recovery leading to job and income growth will be contributing factors for housing demand, experts say.

The Reserve Bank of India on June 4 left interest rates unchanged at a record low, a move that is expected to help homebuyers as well as the real estate sector.

Announcing the outcome of the bi-monthly policy review, RBI governor Shaktikanta Das said the monetary policy committee held MPC the repo rate at 4 percent and reverse repo rate at 3.35 percent.

Unchanged rates mean that home loans won't get expensive and buyers can continue to take advantage of the prevailing low rates, which is also expected to sustain demand.

“It is certainly positive for home-loan borrowers as the floating retail loan rates (which are directly linked to external benchmark repo rates) have been at the lowest level of the last two decades,” said Anuj Puri, Chairman,  ANAROCK Property Consultants.