Thursday, June 1, 2023

“Recent developments in the global economy have indicated an upcoming recession, with governments around the world working to develop possible solutions to tackle it. In line with this, the RBI’s decision to increase the repo rate by 35bps comes at a time when the Indian economy is recovering from its post-pandemic disruptions.

These government initiatives, coupled with the fact that India today is one of Asia’s fastest-growing economies, will contribute to lowering inflation rates and infuse further liquidity into the system. While the new repo rate is expected to have a direct impact on home loans and, in turn, home buyer sentiments and sales in the real estate sector, this will only be a temporary phase until the economy stabilises further and is eventually overcome by sustained consumer demand.”