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

“”RBI has hiked the repo rate by 25 bps to 6.5%, which was expected and the MSF rate is now at 6.75% after the revision. The high rate of retail (CPI) inflation, now stands between 5.6% and 5.9%, which is being brought under control through continuous effort. Inflation has shown signs of moderation and the worst is now behind us, as the Indian economy remains resilient. There are, however, concerns about core inflation. Monetary India’s economic growth will continue to be robust financially. Therefore, investment activity will pick up and steam head. This will demand improvements in rural areas with continuity. We are hopeful of this as we have reached the peak of the interest rate hike cycle. The real estate market has remained strong, with promising sales numbers throughout the year, and now that deposit and loan rates have stabilized, we expect to see even further growth in the home sales sector.”