RBI Hikes Repo Rate ; Bank Rate Figures & Das on Indian Economy

Repo Rate

The Monetary Policy Committee (MPC) of RBI hiked the repo rate by 50 basis points on Sept 30 for the third consecutive time, taking the benchmark lending rate to 5.9%

Impact on nifty 

RBI’s decisions on Friday come in line with the market’s expectations, equity indices Nifty50 and Sensex have surged up to 0.9% each after opening the session in the red.

Banks Rate

The Standing Deposit Facility (SDF) rate is adjusted at 5.65%, while MSF and bank rate is revised to 6.15%.

Increase in Intrest rates

The Centre has hiked interest rate for senior citizen savings scheme to 7.6 per cent and for Kisan Vikas Patra to 7 per cent

Impact on Housing

With this repo rate hike, home loans will get dearer soon. This could impact residential sales to some extent during the upcoming festive quarter, particularly in the affordable and mid-range housing segments

Cost of Housing Loan

The hike in home loan rates will be in addition to the other increasing costs such as inflationary trends of construction input costs. With the overall acquisition cost increasing further, developers will have to seriously consider doling out targeted offers and discounts to boost sales during the critical festive

Indian Economy

The Indian economy remains resilient despite global headwinds amid mounting global recession fears and high inflation, the Governor added.