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Below Reaction on RBI Policy By Vimal Nadar, Head of Research at Colliers India

Indian economy stands out strong amidst weakening global economic growth, at an estimated 6.5% for the year 2023-24. Headline inflation continues to lower, but still poses upside risks on back of volatile global conditions. RBII’s unabated commitment towards ‘withdrawal of accommodation’ is on expected lines and essential in the current uncertain global economic environment, marred with tight financial conditions, elevated inflation & geopolitical tensions. RBI’s move to keep the repo rate unchanged at 6.5% reinforces the Central Banks’s effort to support domestic growth and creating a conducive lending ecosystem. The latest inflation at 4.7% is encouraging, however needs to be aligned with other high-frequency indicators to buoy growth in a sustainable manner. As home loan rates are already at elevated levels of 9% and above, this is a significant breather for lenders, developers & homebuyers. First time homebuyers will be better placed to make their home buying decision in a stable lending rate regime. Fence sitters in the affordable & mid segment will have greater visibility of their EMIs & thus effect buying.