Will RBI 35 bps rate hike hit real estate sector? What experts say
Low interest rates have been the biggest factor in the resurgence of real estate demand in the last few years and hence the rate hike would mean a hurdle in affordability, say experts
The Reserve Bank of India monetary policy committee (MPC), which determines interest rates, has raised policy repo rate by 35 basis points (bps) to 6.25 per cent with immediate effect. This is the fifth consecutive hike by the central bank. Repo rate is the rate at which the RBI lends money to all commercial banks.