IGI Logo

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

“With the consumer inflation still above tolerance level, even while some key components like crude oil have improved, keeping a check on the liquidity and expenditure is going to be the RBI’s priority. Given this, we expect the RBI to revise the policy interest rates yet again. We anticipate the upwards revision to be in the range of 35 – 40 BPS, taking the total change since May 2022 to 125 - 130 BPS higher.

From the real estate sector’s standpoint, an upward revision will impact the sentiments of home buyers, who have remained positive despite the last set of revisions that led to a rise in home loan interest rates. A further increase in REPO rates will lead to a proportionate erosion of affordability, thereby can possibly impact sales momentum.”

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