Impact of unchanged repo rate: What's ahead for homebuyers, fixed deposit investors, debt mutual funds and real estate sector?

 On April 6, 2023, the Reserve Bank of India (RBI) held its bimonthly monetary policy meeting and chose to leave the repo rate at 6.5%. In an unexpected decision, the MPC reduced the average inflation rate for FY2024 to 5.2% from 5.3% earlier and revised real GDP growth for FY2024 to 6.5% from 6.4% earlier, amid worries about a global downturn.

"RBI’s decision to take a pause and keep the repo rate unchanged is a very welcome move for the home buyers and the real estate sector. The real estate sector which had seen a robust growth in sales post pandemic was also facing over 30 percent increase in the cost of construction from pre-pandemic levels." - Ashwani Awasthi, Managing Director - South Asia, RICS.

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