RBI must pause repo rate hike, more hikes will hit housing demand, real estate sector, says CREDAI

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Key Points

CREDAI stated that another hike by the RBI will lead to even higher borrowing costs for developers..

This would further lead to even higher costs of projects and housing prices will rise too, with the prices already increasing by 5-6 per cent in the last one year...

With the Reserve Bank of India (RBI) likely to increase its primary interest rate by 25 basis points on April 6, per a Reutes poll, realtors body Confederation of Real Estate Developers Association of India (CREDAI) on Thursday expressed concerns over the potential hike..

CREDAI urged the RBI to not increase the repo rate further because of the financial challenges faced by developers and the potential impact on housing sales due to the consequential rise in prices and home loan rates..

In the past year, the repo rate has increased from 4-6.5 per cent, being solely absorbed by developers leading to added financial burden and burgeoning costs, CREDAI said in a statement...

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