Siddharth Maurya, Resource Specialist, Real Estate & Fund Management on RBI Policy

 

The government has maintained an accommodative stance, as was expected by most of the analysts. This is a good sign for the economy as it will drive growth through increased consumption and spending. This should also result in increased borrowing for the government and other development bodies, thereby pushing forward development activities. Overall a good stand and will be welcomed by the business fraternity.

 

However, as we are maintaining an accommodative stance for a long time, the risk of asset price inflation can’t be completely negated. Prices of real estate and other assets might rise and one should be ready for this. Growth in the prices of raw materials can further result in an uptrend in real estate prices.