Comment by Mr. Samyak Jain, Director, Siddha Group on the RBI policy announcement

Mr. Samyak Jain - Director, Siddha Group

Mr. Samyak Jain, Director, Siddha Group

“The RBI has come far from synchronised rate hikes in its policy, as inflation outlook is beaming. Attempting to taper inflation, the hike in the repo rate, much to expectations, will force the banks to increase lending rates impacting the quantum of home loans off-take and pushing EMIs upwards. The EMI-driven housing market will thus have a cumulative effect and gradually impact the sales velocity in the Real Estate market in the times to come.

A lesser repo rate hike would have helped tackle inflation, yet managing growth.

Mumbai’s Realty market, which has already sustained increased interest rates earlier, will further get impacted for the homebuyers in the pricing category of Rs 1 crore and above.”

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