Dr. Samantak Das, Chief Economist and Head Research & REIS, JLL
economic recovery takes precedence, as RBI maintains the status quo;
Competitive mortgage rates and economic recovery are key for continued
residential real estate growth
Reviving and sustaining growth has been the guiding philosophy of the monetary policy through the pandemic. RBI has reinforced it by keeping the policy rates unchanged. The policy stance is a logical step to support the actual GDP growth of 1.6% that was reflected in Q4 FY 2020-21. The forecast of normal monsoons is expected to result in agricultural sector growth and drive the rural demand. The incipient recovery in the global economy has also increased exports, which is expected to provide a fillip to the economy. However, the growth is likely to be impacted by the downside risks due to the after-effects of the second wave of the pandemic.