Commenting on the monetary policy, CREDAI National President Satish Magar said linking of housing loans to LTV would boost housing demand.
The big reveal in Friday's policy review is GDP estimate with RBI gaining a clear read on the economy since the pandemic began in March.
RBI had last revised its policy rate on May 22, in an off-policy cycle to perk up demand by cutting interest rate to a historic low.
The six-member MPC saw upside risks to food prices and elevated headline inflation during July-September, which would ease in the second half of the 2020-21 fiscal.
Real Estate sector welcomes repo rate cut, but seeks long pending one-time loan restructuring demand
Anuj Puri, Chairman – ANAROCK Property Consultants said that home loan interest rates have already gone down substantially over the last year.
With repo rate at 4 per cent, one can expect banks to lower interest rates further, which means home or auto loans will become even cheaper for new customers.
For conducting such reverse repo operations, the Reserve Bank of India Act needs to be amended, the research report by State Bank of India - Ecowrap noted.
Isaac said that the country expected a response from the RBI chief on three important demands.
Several factors including banks’ inflexible cost of funds for FDs hamper faster transmission.
Bank credit to registered NBFCs (other than MFIs) and HFCs for on-lending will be allowed up to an overall limit of five per cent of individual bank’s total priority sector lending.
The RBI move is aimed at providing cheaper money to banks at the repo rate and, thus, improve liquidity in the banking system.
Even as the MPC recognized India's weakening growth, it preferred to pause in order to assess the impact of the recent government measures to stimulate the economy.
Lenders believe that the neutral stance adopted by the RBI shows it's willingness to be accommodative with uncertainty over global growth.
The domestic equity indices traded in the red during the late-afternoon trade session soon after the Reserve Bank of India increased its key lending rates, which was widely expected.
The rupee also strengthened marginally to 68.50 to the dollar from 68.54 before the announcement, but came off highs to trade at 68.58 to the dollar.