The decision of the six-member rate fixing panel was announced by the governor.
Those who have taken a loan or are planning to take one can expect an increase in their EMIs to accommodate the rate hike.
The rate-setting panel of RBI did not hike the repo rate on Thursday and it stands at 6.5%.
The rate-setting panel of the RBI began its three-day meeting on Thursday amid expectations that the central bank may hike the benchmark interest rate by 25 basis points.
repo rate unchanged
Experts were of the view that this would probably be the last one in the current monetary tightening cycle that began in May 2022.
The interest rate on home loans shot up when the Reserve Bank of India announced a hike in the repo rate in February.
Repo rate is the rate at which RBI lends money to commercial banks.
Boman Irani, the newly elected chairman of CREDAI National, said, “We applaud the RBI for keeping the repo rate on hold, as a step that will go a long way in sustaining the sales momentum seen in the residential sector. bound to.”
“Given the potential adverse impact of the repo rate hike and its ripple effect on both housing demand and supply, we at CREDAI are extremely happy and welcome the central bank’s decision. The move will further boost the affordable and middle-income housing sectors in particular,” Irani said.
“With the central government also increasing its outlay for the PMAY program during this year’s budget, we expect the demand for affordable housing to pick up in the coming quarters,” Irani said.
Meanwhile, according to Knight Frank India, despite a fifth repo rate hike of 25 bps in February 2023, which took the cumulative hike to 250 bps since May 2022, home buyers continued to commit to the purchase of residential property and this It is reflected in this. No. in Mumbai.
The Monetary Policy Committee, headed by Reserve Bank Governor Shaktikanta Das, took into account various domestic and global factors before coming out with the first bi-monthly monetary policy for the financial year 2023-24.
The decision of the six-member rate fixing panel was announced by the governor.
The central bank had already raised the repo rate by a total of 250 basis points since May to curb inflation, though it has remained above the RBI’s comfort zone of 6 per cent most of the time.
The RBI has increased the repo rate six times so far, including an off-cycle surprise increase of 40 basis points in May 2022.
The RBI has been tasked with ensuring that retail inflation remains at 4 per cent with a margin of +/- 2 per cent. However, it failed to keep the inflation rate below six per cent for three consecutive quarters from January 2022.
The MPC consists of three RBI officers and three external members appointed by the central government.
The external members are Shashank Bhide (Honorary Senior Advisor, National Council of Applied Economic Research, Delhi); Ashima Goel (Emeritus Professor, Indira Gandhi Institute of Development Research, Mumbai); and Jayant R. Verma (Professor, Indian Institute of Management, Ahmedabad).
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