RBI needs to pause rate hike: Assocham President Ajay Singh
Singh, who took over as the Assocham President last week, also said India continues to be a bright spot in the global economy.
Singh, who took over as the Assocham President last week, also said India continues to be a bright spot in the global economy.
With this, the apex bank is expected to pause the repo rate hike for the remainder of FY2024. The first meeting for the current fiscal will be held on April 3-5, 2023.
CREDAI has urged the RBI to not increase the repo rate any further.
"We need to give time for our past policy actions to work through the system," says RBI governor Shaktikanta Das.
The 25 basis point rate hike approved by the majority of the MPC is not warranted in the current context of diminished inflationary expectations and heightened growth concerns, says Jayanth Varma.
ANAROCK chairman Anuj Puri says though 25 bps rate hike is along expected lines, repo rate at 6.5% could have some repercussions on housing uptake as home loan interest rates will head further north.
With the latest rate hike, which was in line with the market expectations, the apex bank has raised the repo rate by over two percentage points in half a year.
This will be followed by a 35 bps rate hike in February 2023 which would take the key policy rate to a peak of 6.75%, says Goldman Sachs.
The repo rate hike could impact residential sales to some extent during the upcoming festive quarter, particularly in the affordable and mid-range housing segments, says Anuj Puri of ANAROCK.
SBI Research expects the peak repo rate in the cycle at 6.25%.