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

Equipment

12 Dec 2025

Schwing Stetter India Unveils New Innovations at Excon 2025

Schwing Stetter India unveiled more than 20 new machines at Excon 2025, marking one of its most significant showcases and introducing several India-first technologies to the construction equipment sector. The company launched the country’s first 56-metre boom pump designed and manufactured in India, the first fully electric truck mixer, the first CNG mixer variant and the first hybrid boom pump. Executives said the launch portfolio was engineered to support India’s move toward faster, greener and more vertically oriented infrastructure through advanced engineering, clean-energy solutions a..

Infrastructure Energy

12 Dec 2025

SEPC Resolves Hindustan Copper Dispute, Wins Rs 725 Mn Order

Engineering, procurement and construction firm SEPC Ltd has recently settled a dispute with Hindustan Copper Ltd (HCL) and secured a mining infrastructure order valued at Rs 725 million from the state-owned company. SEPC informed the stock exchanges that it has executed a settlement deed with HCL, bringing closure to all inter-se claims and counterclaims arising from arbitration proceedings. As part of the settlement, SEPC will receive Rs 304.5 million as full and final payment, marking the resolution of all pending disputes between the two entities. The company also stated that Hindustan Co..

Infrastructure Energy

12 Dec 2025

Karnataka Clears Goa–Tamnar Line Despite Forest Impact

Karnataka has expedited approval for the contentious Goa–Tamnar power transmission project, clearing it only months after softening its stance and requesting a revised proposal from the implementing agency. The decision comes despite the project’s significant ecological risks to Mollem National Park, Bhagwan Mahavir Sanctuary and nearby villages, where large-scale forest diversion and fragmentation threaten sensitive Western Ghats ecosystems. The Karnataka Forest Department has now approved the updated proposal. The state government had earlier paused the project, linking the delay to Goa..