RBI should explain why it is increasing rates: Rajeev Talwar
During every policy review, markets expect RBI to lower rates or maintain status quo. Markets always believe in the growth story
Jan 29, 2014
Source : Business Standard


DELHI: The Reserve Bank of India (RBI) increased the repo rate on Tuesday. If the rise in repo rates does not lead to an increase in bank rates, it is a temporary measure to track inflation. If inflation goes down, RBI will, hopefully, reduce rates. If bank rates rise, it will impact the industry and economic growth will suffer a setback. Going forward, I hope RBI will not increase rates.

When former RBI governors met recently, there was a consensus that the central bank should focus on growth and stop focusing on inflation.

With Tuesday's announcement, the RBI governor has surprised many. During every policy announcement, markets expect RBI to lower rates or maintain status quo. Markets always believe in the growth story.

There is a need to lower rates to stimulate demand in the economy. RBI cannot just announce the policy; it should explain why it is increasing rates. Everybody is accountable to the nation.

As far as real estate sector goes, it is equally dependent on the economy. If the economy is impacted, this sector will also go down.


Latest Realty News

Police seek annulment of Artha Tatwa Group’s assets
Jan 29, 2014
BHUBANESWAR: The Commissionerate Police have written to the State Finance Department for annulment of property of non-banking financial company Artha Tatwa Group that allegedly duped investors of more than Rs400 crore.
RBI seeks to control inflation: India Inc
Jan 29, 2014
MUMBAI: The Reserve Bank of India's move to increase repo rate by 0.25 basis points is aimed to control rising prices rather than encouraging economic growth, say CEOs.
10 things to watch for in the commodities space
Jan 29, 2014
MUMBAI: Citi commodity research has come out with a report highlighting 10 areas that should be watched as they will have an impact on the world’s largest commodity consumer with 40 per cent market share. These factors could shape commodity prices and demand outlook in the coming months and years.
Business leaders decry rate rise
Jan 29, 2014
MUMBAI: The Reserve Bank of India (RBI)'s raising of the repo rate (at which it lends to banks for the short term) by 0.25 basis points is aimed to control rising prices rather than to encourage economic growth, say chief executives (CEOs) of companies.
'Teen Patti', drawing on real estate card game
Jan 29, 2014
KOLKATA: In a change of the theme of the Bollywood caper, which had featured the Big B and Ben Kingsley, the Bengali Teen Patti is quintessentially Kolkatan, as a crimer thriller starring the new Tolly heartthrob Ritwik and Puja Bose.
Hike in key interest rate to hit property market: CREDAI
Jan 29, 2014
DELHI: The Reserve Bank's hiking the key policy rate today will hit property sales, particularly in the residential segment, real estate developers said while expressing disappointment at the move.
Housing market set for positive growth in city’
Jan 29, 2014
TIRUCHI: Although the economic slowdown has resulted in poor demand for housing properties in the city last year, there are signs that the market is on the road to revival, say members of the Tiruchi chapter of Confederation of Real Estate Developers (CREDAI).
Realtors left wringing hands with home loans set to cost more
Jan 29, 2014
DELHI: Hit by slowdown in sales coupled with few new launches, the real estate sector says it is disappointed by the Reserve Bank of India’s move to hike the repo rate.
Cabinet to take decision on FDI in farm land
Jan 29, 2014
DELHI: The UPA Government has formed a three-member Cabinet committee to examine the possibility of opening up agricultural land to Foreign Direct Investment (FDI), following a Union Urban Development (UD) Ministry proposal on letting foreign realtors buy agricultural land.
The case for a land value tax
Jan 29, 2014
MYSORE: In a feudal society like India, land ownership has always been a source of wealth and power.

Latest Realty News Of State

Realty Talk's