RBI Policy did not meet expectations reckons Mr. Ashwin Sheth

The RBI Policy announcement by Dr. Raghuram Rajan, RBI Governor keeping key policy rates unchanged at 6.75% did not meet expectations of the real estate industry said, Mr. Ashwin Sheth, CMD, Sheth Corp Ltd.

"Though a balanced move, RBI could have done much more. However, the rate cut would have helped in lowering the home loan interest rates making home buying a reality for most buyers who have been eagerly waiting for the rates to cut down. This would have also helped to accelerate the growth of the real estate industry."

RBI has also been cautious ahead of an expected rate increase by the US Federal Reserve, which meets in mid-December. There is a possibility that interest rates in the US might eventually go up for the first time since the global economic crisis of 2008. Keeping this in mind, RBI has played a wait and watch game.

RBI must look at the real estate sector with new sanguinity, added Mr. Sheth.

Source : Equity Bulls

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