Comment by Mr. Rohan Pawar, CEO of Pinnacle Group on Hike in Repo Rate by RBI MPC

“The August meeting of MPC was one of the most crucial ones as the Indian economy is at a very critical juncture. While the RBI decided to hike the interest rate again by 50 bps to 5.40%, the SDF (Standing Deposit Facility) stands adjusted to 5.15%. Meanwhile, the Repo rate is back to pre-pandemic levels and has been at its highest since August 2019. At the same time, the inflation in agri-commodities around the globe is showing no signs of abatement while the Russia-Ukraine war still continues. An upward revision will impact the sentiments of home buyers, who have remained positive despite the last set of revisions that led to a rise in home loan interest rates.”