Real estate sector relieved with RBI holding on the existing rates

Chennai: The real estate players must be heaving a sigh of relief at the Reserve Bank of India's (RBI) Monetary Policy Committee's (MPC) decision to hold the repo rate at 6.5 per cent.

In an unanimous decision, the MPC on Thursday decided not to revise upwards or downwards the repo rate -- the rate at which the RBI lends to the banks.

"The RBI's decision to hold rates is welcome as this will enhance buyers' confidence especially after repeated hikes had already increased their acquisition cost," said Ramani Sastri - Chairman & MD, Sterling Developers.

Home loan interest rates are already at an alarmingly higher level of 9.5 per cent and above due to the increase in repo rates in the recent past. A further hike would have taken the housing loan interest rates to double digits.

Several industry officials had voiced their views on the impact of another rate hike on the home loan interest rates.