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Below is Perspective on Monetary Policy by Mr. Sanjay Dutt, MD & CEO, Tata Realty and Infrastructure Limited

The rate hike of 50 basis points was expected, given that the RBI has been maintaining repo rates for the longest time in history. Inflation is pushing the RBI to create a manageable growth path for the GDP, which is currently projected at 6.7 percent under normal circumstances, owing to the geopolitical situation and global economic slowdown. However, it is dependent on the global economic situation. Raising the lending limits by 100% for cooperative banks is a positive step that will encourage housing development outside of Tier 1 and Tier 2 cities. What needs to be watched out for in the future is the inflation trajectory, because the input cost for supply is on the higher side, and when combined with the loan rates, it will cause mild discomfort for home buyers because prices will now rise and will quickly return to pre-pandemic levels. Overall, we are in the Rise Economy period where we need to arrest this and make sure proactive efforts are made by the Government and reverse the cycle. I genuinely believe there would be some Central Government initiatives to focus on the larger picture

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