Ramesh Nair, CEO, India and MD, Market Development, Asia, Colliers
On expected lines, RBI hiked repo rate by a further 50 bps to 4.9% while continuing to move away from its accommodative stance. The hovering inflationary concerns amidst the resilient domestic economy supports this RBI’s aggressive move. Despite the challenging global environment, Indian economy is strongly placed and on the path to recovery and GDP growth is pegged at 7.2% for FY 2022-23. On a cumulative basis, this translates into an almost percentage point increase in repo rate in the last 1 month. However, it remains lower than the pre-pandemic level of 5.15%. We expect banks to gradually pass on this rise in the form of higher home loan rates in the coming months. An opportune time for homebuyers to take advantage of the prevailing home loan rates at a time when prices are also expected to rise in most of the markets led by revival in demand.
Amit Goyal, CEO, India Sotheby’s International Realty
RBI decision to hike the policy rates is on the expected lines. With inflation lingering obstinately high, RBI had little choice. We hope the hike in repo rate would rein in rising commodity prices and ensure sustainable growth in the long term. At the same time, we don’t see any major impact of the demand side in the housing market, which continues to remain strong. We are hopeful with the supply side measures taken by the government, inflation will cool down by the year-end, and the central bank will revert to a lower interest rate regime.