Reaction To RBI's Monetary Policy Review


 by JLL India

Mr. Shobhit Agarwal, Managing Director – Capital Markets, Jones Lang LaSalle India:

The Reserve Bank of India (RBI) announced certain monetary measures in its 3rd quarter review on 29th Jan. 2013. Some of the key policy measures are –

  *  0.25% reduction in repo rate from 8 % to 7.75 % (consequent adjustment to reverse repo rate to 6.75 %)

*  Reduction of bank rate to 8.75 %

* Reduction of CRR (Cash Reserve Ratio) by further 0.25% to 4%

 The RBI has taken a huge positive step by announcing the above policy measures.  RBI has shown commitment to improving liquidity in a cash strapped economy by reducing the CRR further in this policy coupled with reduction in repo & bank rates.

Liquidity is expected significantly improve in the economy on the back of the reduced repo rate, CRR & bank rate.  Consequently, there should be a revival in investment and growth – including in the real estate space. Industrial activity, which has been sluggish last year (2012), should bounce back in the medium term.

Inflation should also witness some easing with at least the supply side being addressed & cost-push pressures being mitigated. The RBI’s policy is definitely a key to boosting real estate market sentiment &  sending out positive signals to global investors.

About the author
Mr. Shobhit Agarwal is Managing Director (Capital Markets), at Jones Lang LaSalle India

For Media Contact:
Arun Chitnis, Assistant Vice President, Marketing
Jones Lang Lasalle India , Level 6, Amar Avinash Corporate Plaza
Bund Garden Road, Pune - 411001.
Tel: 020 -  30930441 Fax: 020-  40196101
Mob: +91 93227 38464
Website: www.joneslanglasalle.co.in
Blog: www.joneslanglasalleblog.com/realestatecompass



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