Rate Cuts to Boost Demand and Help Real Estate and MSME Sectors: CII

Welcoming the announcement of the measures by PSU Banks to support the MSME and the Housing Sector, the CII Director General, Mr Chandrajit Banerjee said that this comes at the right time and would provide the much needed support to the two sectors. The MSME sector has been one of the worst hit as a result of the credit crisis and this would help ease the cost of credit burden on these companies. However access to easy credit still remains an issue for MSMEs said Mr Banerjee.
The CII Director General went on to say that Low cost Housing has a tremendous multiplier effect and hence the decision of the PSU Banks to cut rates for the sector implies that overall demand would get a boost. This would naturally help the real estate sector as demand picks up, and this is really needed since the sector has been reeling under the impact of the economic slowdown.