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Below is Perspective on Monetary Policy by Mr. Rahul Talele, Group CEO, Kolte Patil Developers Limited

The announcement of raising the repo rates by 50 basis points was expected, as the goal is to manage the inflationary pressures caused by the geopolitical situation. The sector is currently reeling from higher input costs, which have increased property prices by a margin; as repo rates rise, so will home loan rates. The positive side of this increase is that it will encourage home buyers to invest in residential assets because rates can now return to pre-pandemic levels at any time. The negative side is that many home buyers may experience mild discomfort as a result of the consistent rise in price. Overall, the policy is on track, and we look forward to bridging the input-output gap via strategic offerings and schemes that will lower the burden on the home buyers.

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