Assocham President Ajay Singh on April 4, 2023, urged the Reserve Bank of India (RBI) to maintain a status quo in the repo rate in the wake of uncertainties in the global business environment.
A 3-day meeting of the RBI’s 6-member Monetary Policy Committee (MPC) is underway since April 4, 2023. An announcement on the key rates will be announced on April 6, 2023. The markets expect the apex bank to raise the repo rate by 25 basis points in its first bi-monthly meet for fiscal 2023-24 to check inflation, which is above its upper band of 6% for two consecutive months.
“There are suggestions from some quarters about another 25 bps increase in the repo rate by the RBI Monetary Policy Committee. We feel the economy has reached a saturation point beyond which it may be difficult to absorb any more rate hike. Rate sensitive sectors like real estate, including residential complexes, passenger cars, commercial vehicles may see negative impact of the rate hike,” Singh said in a press conference while taking charge as the industry body president.
Since May 2022, the RBI has increased the repo rate, at which it lends funds to financial institutions in India, by 250 basis points (bps). If the RBI were to go for another 25-basis point increase, the repo rate would be 6.75% as against 6.50% currently.
An alumna of the Indian Institute of Mass Communication, Dhenkanal, Sunita Mishra brings over 16 years of expertise to the fields of legal matters, financial insights, and property market trends. Recognised for her ability to elucidate complex topics, her articles serve as a go-to resource for home buyers navigating intricate subjects. Through her extensive career, she has been associated with esteemed organisations like the Financial Express, Hindustan Times, Network18, All India Radio, and Business Standard.
In addition to her professional accomplishments, Sunita holds an MA degree in Sanskrit, with a specialisation in Indian Philosophy, from Delhi University. Outside of her work schedule, she likes to unwind by practising Yoga, and pursues her passion for travel.
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