“It is a highly disappointing step by RBI to raise repo rate by 25pbs. It is not going to help RBI curb inflation any more. In fact, in its fight with inflation, Hon’ble governor is completely ignoring the IIP data which is already diving down into negative territory. The manufacturing and construction sector is struggling hard to move on.
We were actually expecting a rate cut instead from the apex bank which would have infused some positive vibes in this sentiment driven market. This move by RBI would encourage banks to increase their lending rates which are already beyond reach. I am afraid this rate hike will demoralize home buyers who already prefer fence-sitting due to unstable political scenario. Indeed, it is a bad days for Indian realty”.
