Home-loan and other borrowers can breathe easy — for now.
The Reserve Bank of India (RBI) on Tuesday kept key interest rates unchanged but obliquely hinted that a rise might not to be far away as policymakers shift focus to contain prices and sustain growth.
“(These) measures constitute the first phase of exit,” RBI governor D Subbarao said while announcing the quarterly review of the monetary policy.
The RBI tightened norms for lending to commercial real-estate projects.
This knocked the wind out of realty companies, taking their share prices down by 6.8 per cent and pulling the Sensex down by 387 points.