The Economist's Zone

Anuj Puri, Chairman - ANAROCK Property Consultants Expressing his views on Fourth Bi Monthly Monetary Policy Statement 2018-19 Anuj Puri, Chairman - ANAROCK Property Consultants, said, "In its monetary policy today, RBI has taken the unexpected stance of keeping the repo rates unchanged. This is surprising and contrary to the industry's expectations, which skewed more towards an increase on the back of increasing inflation and depreciation of the rupee. This move could have been seen as favourable for the real estate sector in the short-term; however, banks have already started increasing their lending rates even before the monetary policy was announced. It is, in fact, a worrisome development from a macro-economic long-term perspective. It will result in increased fiscal deficit, which does not bode well for any industry, including real estate, and also in further erosion of the rupee's value".  

A move to curb Rupee fall amid rising oil prices The apex bank of India in order to stabilize Rupee, announced liberalization of the policy for public sector oil marketing companies (OMCs) in the case of external commercial borrowings (ECB) for working capital purposes. Under the extant policy, ECB can be raised under tracks I and III for working capital purposes if such ECB is raised from direct and indirect equity holders or from a group company, provided the loan is for a minimum average maturity of 5 years. As per the new provision, the Reserve Bank of India (RBI) on 03 October 2018, announced that public sector OMCs can raise ECB for working capital purposes with minimum average maturity period of three to five years from all recognized lenders under the automatic route. “In consultation with the Government of India It has been decided to liberalise the said provision and permit public sector Oil Marketing Companies (OMCs) to raise ECB for working capital purposes with