Hike in Repo Rate might affect Real-estate and Auto Sector say experts
Current inflation in India is not due to surge in demand exceeding supplies. On the contrary, consumption demand is subdued and the production capacity is underutilized. In such circumstances,recent hikes in repo rate from 4.0% to 4.9%, almost by 25%, might be counter-productive. It shall increase lending rate hiking EMI of Housing and Auto loan.