Similarly, Industry bodies like NAREDCO & CREDAI sought the intervention of the government to address the concerns of the real estate sector.
Soon after the Reserve Bank of India (RBI) raised the repo rate by 40 basis points, the banking sector imitated the same by increasing interest rates in lending and deposit schemes. From major banks to even small finance banks, all joined the bandwagon of raising lending and deposits rate. A number of banks raised their external benchmark based lending rates following an increase of 0.40 per cent in the repo rate – at which the Reserve Bank lends short term money to banks. This move by the banks will impact the growth of the real estate industry and may hit the housing demand.
Source – Free Press Journal
