The Reserve Bank of India’s (RBI) decision to keep the repo rate at 6.5% has ongoing ramifications for home loan borrowers and real estate developers. This comes after the RBI has maintained this rate for four consecutive monetary policy reviews, leading to persistently high home loan interest rates.
This stability in the repo rate is a result of six consecutive hikes that took place from May 2022 onwards. The unchanged rate has been a significant factor in shaping the current home loan interest rates, which remain high despite the steady repo rate.
In the real estate sector, industry figures such as Ramani Sastri of Sterling Developers and Lincoln Bennet Rodrigues of The Bennet and Bernard Company have expressed support for the RBI’s decision. They predict an increase in housing demand during the upcoming festive season, attributing this expected surge to the continuation of current policy rates through 2023.
In addition, both Sastri and Rodrigues advocate for a further reduction in interest rates in the near future. They believe such a move could stimulate the real estate market further, particularly in light of the anticipated festive season surge.
While the RBI’s decision continues to shape the real estate landscape and influence home loan borrowers, industry insiders remain optimistic about potential market growth in the coming months.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Read the full article here