Further interest rate hike by RBI may dent real estate demand

The Reserve Bank of India’s upcoming monetary policy committee announcement and guidance is expected to be a decisive event for the interest rate-sensitive Indian real estate sector. The next monetary policy committee (MPC) meeting is scheduled for August 3-5. In line with the global trend of monetary policy tightening to cool off inflation, the RBI has so far hiked the key interest rates by 90 basis points to 4.90 percent.