RBI Monetary Policy 2022: What to Expect?

The much-awaited RBI Monetary Policy was finally unveiled by RBI Governor Shaktikanta Das last Thursday which took the market by surprise when it provided them with an unexpected dovish monetary policy. The policy left the rates unchanged. The governor informed the country about the borrowings, stating that it won’t be a big burden as it appeared to be.

The status quo of the rates implies that the interest rates in home loans neither will go up nor down and will remain the same. The no-change of repo rate also signifies the health of deposits, which will too surge significantly. The repo rate and reverse repo rate are maintained at 4% and 3.35% respectively. 

In his post-policy conference with the reporters, the government hinted towards the borrowing which will not be as big as it was stated in the union budget 2022. The governor also informed about the leverage provided to the foreigners who have been given a free hand to invest Rs 1 lakh crore in Indian bonds, which will take some pressure off from the borrowings habit of the country.

“The government will be borrowing Rs 65,000 crore to pass on to the National Highways Authority of India. This money would have otherwise been raised by NHAI, said Shaktikant Das. He also added further that the small savings would be higher, meaning lower borrowings. 

“The whole character of inflation in the US is different. In the US, used car inflation is a major component, we do not have that and neither do we import used cars. In Europe, one of the issues is the availability of truck drivers, we do not have that issue in India. Food inflating according to Food and Agriculture Organization is ruling at 29-30% but our food inflation is 6.5%,” said RBI Deputy Governor Michael Patra.

The unchanged repo and reverse repo rate will only further promote people to take home loans, this will push investors to invest in the real estate market on a large scale. Investing in a real estate market is a good option in 2022, as this sector is expected to rise exponentially, now when things are almost back to normal. 

So, if you are looking for opportunities in investing in the best commercial projects in Noida, Sector 18, then Wave One Commercial Office Spaces could be a great choice.

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