RBI Monetary Policy Meeting Announcement: Experts' take On Investments

The RBI Monetary Policy Committee (MPC) meeting has been concluded today. Despite inflation edging higher in the aftermath of the Russia-Ukraine war, along with the rising crude oil rates, the central bank has again decided to keep the repo rate unchanged at 4% and the reverse repo rate at 3.35%. The RBI is maintaining its accommodative stance again. Experts have shared their opinion about the RBI MPC meeting decision on the investments front.

Nish Bhatt, Founder & CEO, of Millwood Kane International - an Investment consulting firm commented, "The current RBI policy did not have any surprises, it kept rates unchanged for the 11th straight policy. But it has clearly laid out the path to policy unwinding. The focus from now on will be to withdraw the accommodative policy stance to keep inflation in check. Today's announcement clearly indicates the end of easy monetary policy by RBI, the same reflected well on the 10-Year benchmark yield which hit a multi-year high. The unwinding of liquidity will create some turbulence, and the likely reason for RBI to lower the growth rate projection for FY23 to 7.2%, inflation aim hiked to 5.7% from 4.5% earlier. The clear aim of the central banks worldwide is to control inflation, unwind easy liquidity and focus on slow and steady growth."

Anuj Puri, Chairman, ANAROCK Group told the media, "The real estate industry had been gearing up for an increase in the repo rates, and the fact that this has not happened is obviously positive for home loan borrowers. Developers' input costs have been inflating steeply and a hike in property prices is not more or less inevitable. Moreover, the acquisition cost in Maharashtra has gone up by 1% on account of the metro cess applicable from this month. To this sombre backdrop, increased home loan lending rates would have been a considerable setback. Homebuyers have a continued opportunity to avail of decade-low home loan interest rates. The overall cost of living has increased significantly since the Ukraine debacle began playing out, and the RBI has taken a proactive and necessary step to maintain relative housing affordability in the country."