Central bank to boost real estate and growth, Christian businessman says
Mumbai (AsiaNews) - For the first time in nine months, the Reserve Bank of India (RBI), India's central bank, has cut interest rates by 25 basis points to 7.75 per cent. This will have positive effects on real estate and economic growth, this according to Freddy Mendonca, founder of 'Dimensions', the Christian Chamber of Commerce.
Both markets and the central government expected the move following poor fourth quarter results last year. Growth last year averaged 5.3 per cent, against almost 9 per cent in the first part of 2011.
The central bank also lowered banks' cash reserve requirement (CRR)-or the ratio of deposits they must park with the RBI-to 4 per cent from 4.25 per cent to ease a liquidity crunch. The CRR reduction should release about 180 billion rupees (US$ 3.2 billion) into the banking system.
"When the real estate sector expands, it pulls other smaller sectors," Mendonca told AsiaNews. "Although the consequences are not immediately visible, there will be more liquidity. It is clear that is not sufficient, but it is important that the right path and approach have been found to re-launch this country."
The Christian businessman is the founder of Mumbai-based Dimensions whose aim is to "encourage Indian Christians to take risks and become active members of the community. To be successful and get results, you must take risks."
At the same time, "Wherever we go, we also try to promote the idea that each worker must be paid" for his work and toil, he added.
In November 2012, Freddy Mendonca was conferred the CtrlS - iCONGO 'Karmaveer Puraskar' Global Award for Social Justice and Citizen Action for his 'I Can Do' attitude and for his citizen action for social justice, through which he has become and led the change with his relentless efforts.