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Below is Perspective on Governors Announcement By Mr. Gulam Zia, Senior Director- at Knight Frank India

“With the rapidly changing geopolitical scenario that continues to pressurize the global supply chain and commodity prices, domestic policy rates were expected to be realigned to the changing scenario. Therefore, while not unexpected, as the RBI Governor had already shared concerns over rising inflation, the interest rate hike amidst rising input costs is expected to have its impact on real estate. The sector has vastly benefited by the low interest rates in the last two years. This policy rate hike will translate into higher EMIs for home loans.  However, we believe that improved homebuyer attitude, preference for owning a house and strong wage growth will continue to support the housing market. The monetary policy stance is still accommodative and with the receding pandemic and economic growth, we expect that consumer demand will remain buoyant in the near term”.

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