Comments from Business Leaders on RBI Repo Rate update

Repo Rate
Reserve Bank of India (RBI) kept the repo rate unchanged at 6.5 per cent for the next three months.Following this move, several business leaders have shared their comments with Thought Habitat. Here are some of them.

Reserve Bank of India (RBI) has announced no change to its repo rate for the next three months. Following this move, several business leaders have shared their comments with Thought Habitat. Here are some of them.

Mr. Kush, CEO, Essar Power

The RBI’s decision to maintain the repo rate at 6.5 per cent signifies a cautious approach to upholding economic stability. This deliberate monetary policy aims to provide a conducive environment for businesses to make strategic investments while effectively managing inflationary challenges. This persistent commitment instills trust in the financial domain, bolstering economic expansion.

Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd


As expected, the RBI kept rates on hold. The prolonged pause, for the sixth time, since February 2023, is aimed at keeping inflation in check without hurting the economic growth momentum. With the reduction in policy rates would have been the best scenario for interest-sensitive sectors like the real estate sector, policy continuity is the next best outcome for both borrowers and developers alike. The decision allows homebuyers to make informed choices, which is expected to result in enhanced demand across all housing segments in line with the country’s overall economic progress.

Pawan Sharma, Managing Director Trisol Red

RBI’s decision not to increase the repo rate is once again good news for the real estate sector. The fact that the repo rate has not increased in the past year has proven beneficial for the real estate sector in every aspect. This is undoubtedly excellent relief news for both home buyers and investors. Indeed, this will further benefit the market.

Vikas Bhasin, Chairman & Managing Director, Saya Group


The RBI’s decision to keep the repo rate steady provides optimism to the real estate sector. This move underscores both macro and microeconomic stability, fueling year-end housing sales and bolstering the sector’s growth trajectory for 2024. It showcases the resilience of the country’s economy, poised to spur growth, particularly in premium housing and commercial segments.

Amit Modi, Director County Group

RBI has not made any changes in the repo rate, which is undeniably beneficial for the real estate sector. This will particularly uplift the morale of home buyers and investors. It clearly indicates that the country’s economy is consistently performing well.

Vikas Bhasin, Chairman & Managing Director, Saya Group


The RBI’s decision to keep the repo rate steady provides optimism to the real estate sector. This move underscores both macro and microeconomic stability, fueling year-end housing sales and bolstering the sector’s growth trajectory for 2024. It showcases the resilience of the country’s economy, poised to spur growth, particularly in premium housing and commercial segments.

Ajendra Singh, Vice-President (Sales & Marketing) Spectrum Metro

Once again, not making changes in the repo rate signifies that the Indian Economy is strong. Compared to the Global Economy, India’s economic situation is better. The steps taken by the RBI are beneficial for the commercial and residential real estate sector in every aspect. We hope that this entire year will prove to be suitable for investors.

Pankaj Kalra, CEO, EOGEPL 

The RBI’s recent decision regarding the policy repo rate reaffirms the unwavering dedication to guiding India’s economic journey through these uncertain times. By maintaining the repo rate at 6.5%, we are committed to upholding stability despite global challenges. We acknowledge the concerns surrounding the volatility and surge in crude oil prices, which contribute to inflationary pressures. However, we firmly believe that India’s macroeconomic fundamentals will remain resilient. Despite the global economic slowdown due to tightening financial conditions, RBI has forecasted of a robust 7% GDP expansion in FY24, with an expected inflation rate of around 5.4%. This reflects India’s steadfast position as a beacon of stability and strength amid global challenges.

Murthy Nagarajan, Head-fixed income, Tata Asset Management

RBI in its monetary policy has kept the CPI Inflation target for next year at 4.5%. The potential GDP growth seems to be above 7% as RBI has projected growth of 7% even when global growth is slowing. As capex increases in the economy, we feel we may have potential growth rate of 8% with CPI inflation around 4%.The government along with RBI is working together to have high growth and low inflation in the coming decades, which auger well for our economy. On the liquidity front, they have stated they will be doing two-way operation to keep liquidity in balance, they are aiming for overnight rates to trade around policy rates of 6.5% as RBI stance continues to be withdrawal of accommodation. Given the geo-political uncertainty, RBI does not want to lower its cautious stance and put the Target of CPI inflation of 4 percent at risk.

The debt market has reacted slightly negatively due to no statement of easing liquidity, but the long-term positive lies in their commitment to bring CPI inflation to 4% level. We should see 10-year yields going down to 7% in the coming days as monthly CPI inflation cools down below 5% in following months.

Keep watching this space for more such updates!

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