Mr Cyrus Mody, Managing partner, Viceroy properties LLP on RBI MPC Announcement  

The RBI MPC hiking repo rate by 50 bps is on the expected lines. Inflation around the globe has become a concern and policy formulation is expected to hover around it. We are witnessing rate hikes across the world. The US Fed and the Bank of England have hiked rates in the past few weeks to control inflation that has hit multi-decade high levels. This is the fourth consecutive hike by the RBI. It will lead to a rise in the EMIs for homeowners as interest rates have cumulatively risen by 190 bps. But, a silver lining for India is that despite the rate hike we are witnessing demand for housing, unlike in the West and China where we can see a clear pricing pressure. With the fiscal situation improving, the Indian economy is expected to grow upwards of 7% for FY23 – going forward, we expect demand for larger homes and high-quality real estate projects to stay intact despite the rate or price rises.