RBI has cut the repo rate by 100 bps to 8%. This is effective immediately. The Finance Minister, P Chidambaram said that the repo rate cut will help in moderating inflation. This is a positive move which will enthuse both borrowers and investors, Mr. Chidambaram added. The RBI’s move is consistent with the government’s aim of maintaining high growth, he added.
This news may come as a boon for the realty companies as it may help bring down loan rates. This is the first repo cut since 2003.
We feel that a lot of liquidity is already infused in the past ten days. The move may not have an immediate impact on stock prices. Confidence will not come just because of a CRR cut or a repo rate cut. But once global markets recover, this will give a further boost to stock markets.
RBI cuts repo rate might be good news for realtors
This entry was written by , posted on October 21, 2008 at 2:11 am, filed under Real Estate News and tagged Borrowers, Finance Minister, Global Markets, Inflation, Investors, Liquidity, Loan Rates, P Chidambaram, Realtors, Realty Companies, Stock Markets, Stock Prices. Bookmark the permalink. Follow any comments here with the RSS feed for this post.
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