Attention, homebuyers! How severe is RBI’s likely rate hike going to be for your home dreams
The Economic Times
Diksha Tripathy | ET Online
The Reserve Bank of India-led rate-setting panel is widely expected to announce another 50 basis points policy rate hike this Friday, which typically inflates loan rates and impacts the housing sector that is one of India’s key markets.
However, the interest rate hike may not impact the homebuyers severely this time.
During the pandemic, the RBI had cut interest rates from 5.15% to a low of 4%. However, since May 2022, the central bank has been on a rate-hiking journey in order to tame the rising inflationary pressures. The homebuyers were aware of the fact that these low interest rates were transient and unsustainable in nature. They are expecting the hike and are thus prepared for it.