RBI today kept its repo rate or lending rate unchanged at 6.25 per cent amid its cautious outlook to inflation. This much-expected decision got a mixed reaction of the India Inc, here are the excerpts.
Mr. Surendra Hiranandani, Chairman & MD, House of Hiranandani
" As widely expected, The Reserve Bank of India today kept the repo rate unchanged at 6.25% for the third time in a row. One of the highlights of today's policy was the decision to allow banks to invest in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (INVITs) within the 20% umbrella limit. It will allow banks to invest in an important asset class thereby providing a much needed boost to this segment. Owing to better liquidity, the cost of capital for developers in the commercial segment will come down in the future. The decision to hike reverse repo rate by 25 bps to 6% will control the liquidity surplus in the system. The corridor between repo and reverse repo rate has been reduced to 25 bps indicating that the central bank wants to align market rate with the policy rate."