CREDAI expresses worries on RBI rate hike | SupportBiz

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CREDAI expresses worries on RBI rate hike

 
Tags: CREDAI, RBI
The apex body for private real estate developers in India, the Confederation of Real Estate Developers’ Associations of India (CREDAI) is worried about the fact that, the recent hike in repo rates by 25bps by the Reserve Bank of India (RBI) will deter growth of the housing industry.

Last week RBI’s newly elected Governor Raghuram Rajan, in his maiden review of the monetary policy, has increased interest rates to 7.50 per cent to combat rising inflation.

In a release CREDAI- National President C Shekar Reddy said, "In these challenging times RBI decision to raise the repo rates by 25bps is tougher than expected and could have been avoided. In the coming months we hope the bankers will come out with special schemes to attract the home buyers.“

He further added that, “RBI should formulate a special policy for the housing industry with a focus on affordable   housing. We hope that RBI will take cognizance of the industry requirement and will announce a rate cut, which will provide the needed trigger and encouragement to the sector.”