Commenting on this lending rate revision, MD & CEO Y. Viswanatha Gowd said, “Interest rate hike is in line with the prevailing market condition. We expect this trend to stabilise soon. We are taking care to price our products adequately so that the EMI outgo for our customers remains reasonable. We are confident that the sentiment in the Real Estate Industry will be buoyant during the festive season and the fundamental parameters of the Indian economy will continue to be strong.”
As widely expected, RBI raised the Repo rate by 50 basis points to 5.90 per cent, as the MPC seeks to remain focused on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth, as per a research Report from the State Bank of India’s Economic Research Department.
Elevated imported inflation pressures remain an upside risk for the future trajectory of inflation, amplified by the continuing appreciation of the US dollar. “We believe that a 35 bps rate hike in December looks imminent but beyond December it would be a touch and go,” the report said.
