The Reserve Bank of India (RBI) is likely to opt for reduction in cash reserve ratio (CRR) on January 24 in the monetary policy review rather than cutting the rate of interest. Keki Mistry who is the CEO of Housing development finance Corp said that in the next policy review, Reserve bank of India is expected to cut the Cash reserve ratio than reducing the interest rates. In the previous year the hike in interest rates by reserve bank of India caused trouble to the realty sector.
In an event arranged by the Wharton University of Pennsylvania which was titled as India Economic forum he addressed that reserve bank of India has raised the interest rates to 13 times since march 2010, in order to control inflation which was over 9 per cent for one year. In December a rapid slowdown in food inflation raised hopes for reversal in the monetary cycle. Mistry later on added that interest rates will have a minute impact on the real estate sector. He also said that as the interest rate in real estate is likely to be stable, the current year is going to be far better than the previous year for the industry. Other experts also believe that current year will be better for industry due to huge gap in demand and supply.
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