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India's top corporates say RBI rate hike may help the rupee but not home sales

India's top corporates say RBI rate hike may help the rupee but not home sales

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By CNBCTV18.COMSept 30, 2022 8:34 PM IST (Updated)

RBI governor Shaktikanta Das hiked interest rates for the fourth consecutive time by announcing a 50 basis points hike in the repo rate, in-line with consensus expectations.

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India's central bank maintained its estimate for consumer inflation in the country at 6.7 percent for the year ending March 2023, though it tweaked the projection for the quarter ending December 2022 by 10 basis points.
Here are some top corporate reactions to RBI's monetary policy:
Pralay Mondal, CSB Bank
The MD & CEO of the Kochi-based lender said that RBI's announcement is on expected lines, especially in a highly volatile global economic environment.
"The external debt to GDP ratio is the lowest in India amongst larger economies, representing our relative strength. RBI's thinking of probability-based loan loss provisions is a prudent step in the right direction," he said.
Suresh Khatanhar, IDBI Bank
The lender's Deputy Managing Director is of the belief that RBI's latest actions will lend support to the currency and help contain inflation.
"The economic growth of our country is likely to continue unabated as the inflation is poised to moderate from last quarter of financial year 2023, backed by historic surge in domestic demand and start of a capex cycle," he was quoted as saying.
VP Nandakumar, MD & CEO, Manappuram Finance
The chief of the gold loan provider believes that the keeping liquidity in surplus mode will ensure the Indian currency remains insulated from higher volatility while keeping inflation expectations well anchored.
"Lowering GDP forecast to 7 percent mirrors a more realistic assessment of economic growth," he said in a statement.
Abhishek Kapoor, Puravankara
The CEO of the real estate firm does not expect an immediate impact on the business post the 50 basis points rate hike as demand for new properties remains buoyant during the festive season.
"While we are in a good position, we have to see the sustainability of continued rate hikes, especially from Q1 2023. If this rate hike sustains, then we will have to be careful and watch for the impact it will have on economy and business from next year," he said.
Satish Nair, Vastu Housing Finance
The head of treasury and corporate affairs at the housing finance lender is of the opinion that the rate hike is in-line with global peers and that the RBI has been very realistic on the growth forecast.
"We see that RBI is constantly taking efforts to balance out the risk in a fair manner," he said.
Amarendra Sahu, NestAway Technologies
The home solutions firm believes that the hike in interest rates will further affect housing affordability as the home mortgage rates are back to pre-covid levels or even higher.
"A higher home acquisition cost and interest rates will make renting far more affordable. Also, homebuyers will likely wait for the current cycle to get over," he said.
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