RBI Calls for Faster Rollout of Affordable Housing Programme
Reserve Bank of India (RBI) has kept the repo rates constant at 6%. It called for faster rollout of affordable housing programme through a single window clearance system within a stipulated time frame and rationalization of excessive high stamp duties levied by States.
Urijit Patel, RBI Governor said, “The implementation of the GST so far also appears to have had an adverse impact, rendering prospects for the manufacturing sector uncertain in the short term. This may further delay the revival of investment activity, which is already hampered by stressed balance sheets of banks and corporates”. He further expressed his views on the boost needed for the economy to bounce back to the last experienced peak by adding that, “a concerted drive to close the severe infrastructure gap; restarting stalled investment projects, particularly in the public sector; enhancing ease of doing business, including by further simplification of the GST; and ensuring faster rollout of the affordable housing programme with time-bound single-window clearances and rationalisation of excessively high stamp duties by states”.
While the unchanged repo rates have put a break for the time being on the market expectations for lower rates but at the same time market is also assured that there is no increase and hence the situation won’t take a turn for worst. This has in a way kept the festive season mood of the market neutral.