IGI Logo

Below the Perspective on the expectations from the upcoming RBI MPC Meeting by Mr. Shishir Baijal, Chairman and Managing Director, Knight Frank India

“We expect the Reserve Bank of India’s Monetary Policy Committee (RBI MPC) to keep the REPO rate unchanged as inflation rate in India remains within the upper threshold of tolerance. This will help the real estate sector maintain its current momentum. With the last few revisions, the REPO rate has gone up by 250 BPS, and as a result of this, the base lending rate for home loans have increased by 160bps with the last three revisions being completely passed on to the home buyers. This has started to impact housing demand, especially in the affordable segment. The mid segment too has seen moderation with demand plateauing in the last few quarters. A further increase in the REPO rate could potentially dampen buyers’ sentiment and impact housing affordability.”.

Above views are of the author and not of the website kindly read disclaimer