The unaltered repo rate in the RBI Monetary Policy 2023 is a delightful treat for those in the market for a new home. This move presents an excellent opportunity for homebuyers to purchase their dream home at an optimized cost.
The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) announced on October 6 that it has decided to maintain the repo rate at 6.5%. This decision is expected to give a boost to the housing demand during the festive season when many homebuyers decide to purchase homes, according to real estate experts.
To counter inflationary pressures, the regulator has increased the repo rate by 250 basis points since May 2022. However, for the last four MPCs, the repo rate has remained unchanged.
Real estate consultancy firm ANAROCK Group’s Chairman, Anuj Puri, said that the unchanged repo rate is a festive bonanza for homebuyers, allowing them to make cost-optimized purchases. He added that the stable repo rate and the stable home loan interest rates will likely continue the momentum of growth in the residential market.
Dr. Samantak Das, Chief Economist and Head- Research & REIS, JLL India, also shared his thoughts on the decision. He said that the fourth pause in policy rate augurs well for the real estate sector, especially residential, as the sustained affordability is reflected in the growing sales momentum. He added that there is a possibility of a policy rate cut in 2024, provided the GDP growth and inflation support such a stance of the RBI.
The Founder & Chairman of Signatureglobal (India) Ltd., Pradeep Aggarwal, welcomed the decision and said that stable interest rates are crucial for the real estate industry as they play a significant role in shaping the affordability of home loans and, consequently, the demand for housing. With the policy repo rate remaining unchanged, potential homebuyers can continue to benefit from competitive mortgage rates, making homeownership more accessible.
In conclusion, the RBI’s decision to maintain the repo rate is expected to have a positive impact on the real estate sector, particularly the residential segment, and will likely continue the momentum of growth in the housing market.
