RBI today increased the repo rate by 50 BPS
September 30, Chandigarh: RBI today increased the repo rate by 50 BPS and the lending rate to 5.9 per cent intensifying its fight against persistently high inflation. A 50 bps increase in the repo rate this week is the fourth consecutive hike since May. The MPC has raised the policy repo rate by 140 basis points since May to curb inflationary pressures. The consumer price index (CPI) based retail inflation, which had started showing signs of moderation since May, has again firmed up to seven per cent in August. The repo rate at which the RBI lends short-term funds to banks rose from 5.40% to 5.90%. This is the highest level since April 2019. This has evoked a mixed bag of feelings among real estate developers. While most agreed that the hike was moderate, their views diverged on the actual impact on the buyers at a time when buyers were warming up towards investing in real estate. Mr. Prateek Mittal, Executive Director, Sushma, said "Decision of RBI h...