RBI Hikes Repo Rate to 5.50%

POSTED BY : ANAGHA SAKPAL DT. 07/10/2026 📞  9004379946

MUMBAI : RMI.IN  : The Reserve Bank of India’s Monetary Policy Committee (MPC) today announced a 25-basis-point hike in the repo rate from 5.25% to 5.50%, while revising its real GDP growth forecast upward to 7.1% for FY27.

Reacting to the announcement, leadership of CREDAI-MCHI, the apex body of real estate developers in MMR, said the impact on housing demand is likely to remain limited in the immediate term, though homebuyers may turn more conscious about financing costs.

Mr. Sukhraj Nahar, President, CREDAI-MCHI, said: “The 25-basis-point repo rate hike is a measured adjustment, and its immediate impact on housing demand is likely to remain limited. However, for homebuyers, particularly those dependent on housing finance, even a marginal increase in borrowing costs can influence affordability and purchase decisions. With the festive season being an important period for housing transactions, we believe the underlying demand for homeownership remains healthy, although buyers may become more conscious of their financing costs. The resilience of end-user demand will remain an important factor in sustaining the momentum of the housing market.”

Mr. Rushi Mehta, Secretary, CREDAI-MCHI, said: “While the repo rate hike warrants close attention from the real estate sector, the broader economic outlook remains encouraging. The RBI’s upward revision of the real GDP growth forecast to 7.1%, with growth projected at 7.2% in Q2, 6.9% in Q3 and 6.8% in Q4, reflects the underlying resilience of economic activity. For real estate, sustained economic growth, income generation and consumer confidence remain important demand drivers. We believe the strength of underlying housing demand will help the market absorb this adjustment.”

Mr. Jitendra Mehta, Senior Vice President, CREDAI-MCHI, said : “The Mumbai Metropolitan Region continues to see strong underlying housing demand, supported by infrastructure expansion, improving connectivity and the region’s long-term growth potential. The 25-basis-point repo rate hike is unlikely to materially alter this fundamental demand in the immediate term, particularly during the festive period when homebuying activity typically gains momentum. At the same time, developers continue to operate in an environment of elevated construction and input costs, making the cost of capital an important consideration. A sustained rise in interest rates could add pressure on project economics and affordability, but the MMR’s strong demand fundamentals and development pipeline provide confidence in the market’s continued growth.”