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Below the Views on RBI Policy Impact on Housing Markets and Loans by Kanika Singh Chief Risk Officer– IMGC

Despite strong headline growth figures, the Monetary Policy Committee (MPC) has maintained current interest rates and its "actively disinflationary" stance to anchor inflation at 4%. In my view, this will have a limited impact on the housing market and housing loans. Bank credit deployment remains robust, with double-digit growth. Overall housing demand stays strong, evidenced by increased sales volumes in both primary and secondary markets. Furthermore, a stable lending ecosystem and the emergence of micro-markets benefitting directly from India's infrastructure push have altered the demand-supply dynamics in residential real estate. Additionally, expectations of monetary easing later in the year might be postponed due to the Indian economy's strong growth momentum. However, food price uncertainties and climate shocks continue to pose risks to this positive outlook.

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