Chennai: Reacting to the recent announcements made by Reserve Bank of India, Anshuman Magazine, chairman and CEO – India, South East Asia, Middle East & Africa, CBRE, said, RBI is in a mission mode to nurture the market, preserve financial stability and the timing here is crucial.
In a statement, he said, “this is a welcome move as the sizable reduction of the Repo Rate by 75 bps from 5.15 per cent to 4.4 per cent is an all-time low, and is indicative of the intent of the central bank and the government. The reverse repo rate reduction by 90 bps to 4 per cent will hopefully nudge banks to lend more to the unproductive sectors of the economy. To add to this, fiscal measures such as the deferring working capital interest, reduction of CRR for all banks by 100 basis points, amongst other measures, should address liquidity challenges faced by NBFCs and banks. The decision to defer installments of all term loans by three months will provide the necessary support to homebuyers as well.”