The RBI's freeze on lending rates but experts are still concerned about inflation.

According to real estate analysts, the residential market had record sales from January to September, with sales hitting a 15-year high. The Reserve Bank of India's decision to maintain stable lending rates has been commended by real estate experts, who point out the favourable effects on affordability and demand. Experts noted that there are still certain worries about possible inflationary pressures in the upcoming months. The nation's robust economic development was highlighted by Samantak Das, Chief Economist and Head of Research and REIS (India), JLL, who pointed out that the RBI revised its GDP prediction upward to 7%.

He underlined that the home sector saw record sales, with sales from January to September hitting a 15-year high. The Reserve Bank of India's decision to maintain stable lending rates has been commended by real estate experts, who point out the favourable effects on affordability and demand. Experts noted that there are still certain worries about possible inflationary pressures in the upcoming months.

The RBI revised its GDP prediction to 7%, indicating the country's robust economic growth, according to Samantak Das, Chief Economist and Head of Research and REIS (India), JLL. He underlined the record sales in the residential market, which saw sales hit a 15-year high between January and September.

Das stated that a reduction in the repo rate in 2024 is expected to be supported by strong macroeconomic fundamentals and some normalcy in the world economy the following year. He was certain that the momentum in the home sector will continue to be supported by stable interest rates.

Partner at Grant Thornton Bharat Niladri Bhattacharjee recognised that the rapid growth rate could lead to inflationary pressures, which would affect industries like mining and metals. While acknowledging that keeping tariffs in place benefits the business in the near term, Bhattacharjee cautioned that inflation is still a long-term worry. The president of CREDAI-West Bengal, Sushil Mohta, praised the stable repo rate and noted how it will benefit homeowners by preventing further pressure on mortgage rates. He acknowledged the difficulties the housing industry had suffered as a result of earlier rate increases and expressed optimism that the industry will continue to benefit from a future repo rate drop.

This decision's long-term effects will depend on the RBI's capacity to strike a careful balance between promoting economic expansion and reining in inflation. Chief Economist and Head of Research at Bandhan Bank Siddhartha Sanyal stated: "The story on growth and inflation dynamics was a realistic and balanced one. The RBI's revised growth projections are encouraging, especially in light of the increased confidence in the ongoing broadening of the domestic growth momentum.

"RBI remains open to all options for managing liquidity when needed. The central bank's intention to continue being proactive in identifying and reducing brewing risks on all fronts is further demonstrated by the announcement from today." According to Equirus economist Anitha Rangan, the RBI is holding onto its repo rate at 6.5% with a vote in favour.

The growth forecast revision for FY 24 to 7% from 6.5% was, according to Rangan, the major surprise.

"The RBI hasn't lowered its inflation projection. This indicates, she said, that the RBI is confident that growth is driven by genuine demand rather than inflation at the current policy rate.

The founder and director of Credit Wise Capital, Aalesh Avlani, stated that the stable repo rate is a good development for the credit sector of India, especially for rural clients who may now borrow with greater freedom.

This was evident over the most recent holiday season, when car sales hit all-time highs, partly as a result of stable interest rates and lenders passing the savings along to consumers.