Monetary Policy Committee plans repo rates hike by 4.40%

06 May 2022 CW Team

The Monetary Policy Committee has decided to increase the repurchasing option (repo) rate by 40 basis points.

The real estate developers told the media that they believe in the repo rate hike to 4.40%. It will effectively end the low home loan interest rates that the homebuyers have been enjoying for the past 18 months.

Chairman of Anarock Property Consultants, Anuj Puri, said that the price hike would end all-time low home loan interest rates, which have been driving demand for housing sales during the Covid-19 pandemic.

He added that the rising interest rates and inflationary trends in basic construction materials like steel, cement, labour cost, etc., will increase the burden on the residential sector.

The Indian real estate sector is reviving post-pandemic, with many prospective buyers advancing plans to transform homeowners.

According to Knight Frank India, between July-December 2021, 1,33,487 houses were sold, up by 41% year-on-year (YoY) growth. Overall, 2,32,903 houses were sold in 2021, up by 51% YoY.

Anarock surveyed that a hike in the product price will significantly impact the residential sector.

Chairman and Managing Director of Sterling Developers Ramani Sastri said that the price hike would affect residential demand, which has been revived post-pandemic.

Chief Economist and Research Head of India at Jones Lang LaSalle (JLL), Samantak Das, highlighted the negative impact of repo price hike as it projected an imminent hike in home loans.

He added that the company estimated a robust comeback in five years in residential sales due to affordable housing. But the repo price hike, along with increased cost inflation, might slow down the growth in the residential sector.

Chairman of the National Real Estate Development Council (NAREDCO), Niranjan Hiranandani, said that the residential sector could be saved if the level of insulation sets between the repo rate hike and a real hike in home loan interest rates.

He added that the regulator should ensure that inflationary pressure on homebuyers does not collide with the home loans hike, especially if the inflation rates have been beyond the Reserve Bank of India's (RBI) upper band of tolerance of 6%.

Image Source

Also read: RBI Governor: Interest rates to be cut by 75 bp

The Monetary Policy Committee has decided to increase the repurchasing option (repo) rate by 40 basis points. The real estate developers told the media that they believe in the repo rate hike to 4.40%. It will effectively end the low home loan interest rates that the homebuyers have been enjoying for the past 18 months. Chairman of Anarock Property Consultants, Anuj Puri, said that the price hike would end all-time low home loan interest rates, which have been driving demand for housing sales during the Covid-19 pandemic. He added that the rising interest rates and inflationary trends in basic construction materials like steel, cement, labour cost, etc., will increase the burden on the residential sector. The Indian real estate sector is reviving post-pandemic, with many prospective buyers advancing plans to transform homeowners. According to Knight Frank India, between July-December 2021, 1,33,487 houses were sold, up by 41% year-on-year (YoY) growth. Overall, 2,32,903 houses were sold in 2021, up by 51% YoY. Anarock surveyed that a hike in the product price will significantly impact the residential sector. Chairman and Managing Director of Sterling Developers Ramani Sastri said that the price hike would affect residential demand, which has been revived post-pandemic. Chief Economist and Research Head of India at Jones Lang LaSalle (JLL), Samantak Das, highlighted the negative impact of repo price hike as it projected an imminent hike in home loans. He added that the company estimated a robust comeback in five years in residential sales due to affordable housing. But the repo price hike, along with increased cost inflation, might slow down the growth in the residential sector. Chairman of the National Real Estate Development Council (NAREDCO), Niranjan Hiranandani, said that the residential sector could be saved if the level of insulation sets between the repo rate hike and a real hike in home loan interest rates. He added that the regulator should ensure that inflationary pressure on homebuyers does not collide with the home loans hike, especially if the inflation rates have been beyond the Reserve Bank of India's (RBI) upper band of tolerance of 6%. Image Source Also read: RBI Governor: Interest rates to be cut by 75 bp

Infrastructure Transport

13 Oct 2025

Tata, Airbus to Build India’s First Private Helicopter Line

In a landmark development for India’s aerospace sector, Tata Advanced Systems Limited (TASL) and Airbus will establish the country’s first private-sector helicopter assembly line in Vemagal, Karnataka. The facility will manufacture the Airbus H125 and H125M, marking a significant milestone in India’s push for self-reliance in aviation and defence manufacturing. The new Final Assembly Line (FAL) will produce the H125, the world’s best-selling single-engine helicopter, known for its versatility and performance in extreme environments. The first ‘Made in India’ H125 is expected to ro..

Infrastructure Urban

13 Oct 2025

NeGD to Support Bharat Taxi in Building Cooperative Ride Platform

In a significant move for India’s digital and mobility transformation, the National e-Governance Division (NeGD) of the Digital India Corporation, under the Ministry of Electronics and Information Technology (MeitY), has entered into an advisory partnership with Sahakar Taxi Cooperative Limited, the company behind Bharat Taxi — a first-of-its-kind, cooperative-led national ride-hailing platform. A Memorandum of Understanding (MoU) has been signed between NeGD and Sahakar Taxi to provide strategic advisory and technical support covering key areas such as platform integration, cybersecurity..

Technology

13 Oct 2025

MeitY Hosts Pre-Summit for India–AI Impact Summit 2026

The Ministry of Electronics and Information Technology (MeitY), Government of India, hosted a series of Pre-Summit events for the upcoming India–AI Impact Summit 2026 at the India Mobile Congress (IMC) 2025 in New Delhi. These sessions mark a key milestone ahead of the main summit, scheduled for 19–20 February 2026 at Bharat Mandapam, New Delhi. Delivering the inaugural address, S. Krishnan, Secretary, MeitY, highlighted India’s innovative and frugal approach to AI development. “We have adopted innovative means by learning from others’ experiences to build projects and products that..