Real estate analysts stated on December 8 that the Reserve Bank of India’s decision to maintain the key interest rate at 6.5 percent will increase house demand and provide some relief to homebuyers. This was the central bank’s sixth consecutive decision to hold the rate steady.
The action would guarantee EMI (equated monthly installment) stability for borrowers and demonstrated the central bank’s trust in the economic foundations and growth prospects of the nation.
The RBI took a break in February 2023 after raising interest rates by 250 basis points since May 2022. One tenth of a percentage point is equal to one basis point.
The news set an optimistic tone for the new year, according to G Hari Babu, National President of the National Real Estate Development Council (NAREDCO), with the GDP likely to expand at a rate of 7% in FY24. The repo rate’s stability also indicated a favorable climate for the real estate market’s long-term expansion.
