Views- Higher lending rates does not bode well for any industry, including real estate

-




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".
 

Comments

Post a Comment

Popular posts from this blog

Views- I don’t expect yields to cool off or come down in the near future

-
Image
  I don’t expect yields to cool off or come down in the near future Ganti Murthy, Senior Fund Manager/ Fixed Income Professional   Ganti Murthy, Senior Fund Manager/ Fixed Income Professional “I  see yields moving up slightly if the crude price crosses 100 USD ”,  said   Ganti Murthy, Senior Fund Manager/ Fixed Income Professional   in an interview with  Anjali Raulgaonkar  Excerpts: 1) Bond Yields are high. Fixed deposit rates are also high. Where do you see yields moving on from here in the near to mid-term and why ?.   Yields are a function of demand and supply of money. In the current scenario, the central bank (RBI) has decided to make money dearer by keeping policy rates high with the laudable prospect of containing inflation.   High demand for money results in higher yields. Investors want higher yields, RBI wants higher yields to cool down inflation, companies need money to finance their next phase of expansion meet demand and government needs money to finance its infrastructur
Read more

Views: India is today hot destination for portfolio and FDI investors

-
Image
India is today hot destination for portfolio and FDI investors Sadanand Shetty, CIO, Truequityadvisors  Sadanand Shetty, CIO, Truequityadvisors  “ P olitical environment do not alter the direction of economy except short term volatility ”,  said   Sadanand Shetty, CIO, Truequityadvisors  in an interview with  Anjali Raulgaonkar  Excerpts: What is your advice to the investors in the current economic situation amid expected slowdown in GDP, corporate earnings, global interest rate environment, valuations and flows in the economy and upcoming elections. India has robust economic outlook with consensus estimate of above 20% earnings growth for FY24 and years ahead. Interest rate pressure will create an opportunity to buy stocks at attractive level. Similarly, political environment do not alter the direction of economy except short term volatility. Sustained domestic flows will neutralize any impact of FII volatility. India is today hot destination for portfolio and FDI investors.
Read more

We have benefited to some extent with higher interest rates

-
Image
  Raj Mehta, Debt Fund Manager, PPFAS Mutual Fund   “ With the interest rate and inflation rate differential between US and India, the INR should depreciate approximately 4-5% every year over the longer term ”, said Raj Mehta, debt fund manager, PPFAS Mutual Fund in an interview with Anjali Raulgaonkar ( https://theeconomistzone.blogspot.com/ )     Raj Mehta, PPFAS Mutual Fund                                     Excerpts:   1. Net inflows into domestic equity mutual funds fell 11.4 percent month-on-month to Rs 8,375 crore in August. what can be the possible reasons behind it besides profit booking? What are the expectations in coming months?   The flows have cooled off a little bit since January 2018 given that last year was a very high base. Most of the inflows last year was in the mid and small cap category funds. These funds have given abnormal returns in 2017 and some profit booking had to happen. However, if you look at
Read more