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Below is Quote on the RBI Monetary Policy Mr. Ravi Subramanian, MD & CEO, Shriram Housing Finance

"The RBI today continued to frontload rate hikes to anchor inflationary pressures through a 50 bps hike in the repo rate. With a cumulative hike of 90 bps over two months, the central bank reiterated its stance of ‘withdrawal of accommodation’ to a more neutral scenario, while highlighting that the repo rate is still below the pre-pandemic level of 5.15%.

Attributing the rise in inflation to elevated crude oil and other commodity prices and the global geo-political environment, the RBI today increased the FY23 inflation forecast to 6.7%, but retained the FY23 GDP outlook at 7.2% citing an expected rise in investment activity, government capex and growth of the deleveraged corporate sector. Amid improving consumption and revival in both the rural and urban economy, demand for housing finance continues to be buoyant led by steady real estate prices and as more people and companies return to the work-from-office model."

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