MEDIA COVERAGE
April 8, 2023
Impact of Pause in Hiking the ‘Repo Rate’ on the Real Estate & Finance Market
Mr Rakesh Reddy, Director , Featured Article on Mint
To fight the consequences of an excessive cash injection into markets and mitigate inflation, the Reserve Bank of India (RBI) has been hiking the repo rates for over a year now. RBI convened its twice-monthly monetary policy meeting on April 6, 2023, and decided to keep the repo rate at 6.5%. With concerns about a global recession, the MPC made an unexpected decision to lower the average inflation rate for FY2024 from 5.3% to 5.2% and to modify the real GDP growth for FY2024 from 6.4% to 6.5%. Due to the central bank’s decision to keep the repo rate at its current level, homebuyers may benefit from stable home loan interest rates, while investors with fixed deposits may not experience an increase in rates.
“The RBI’s decision to keep the repo rate unchanged at 6.5 percent was unexpected, but maintaining the status quo is a positive sign and will provide much-needed support to the real estate sector. Undoubtedly, a further reduction in interest rates would have been the preferred course of action to bolster overall market confidence,” stated Mr. Rakesh Reddy, Director of Aparna Constructions in an exclusive with Mint.
To know further about how fixed deposit investors, debt mutual funds, and the real estate sector could grow going forward, and what our director has to say on the same, click on the link below
