RBI MPC: Experts see a 50 bps hike, pressure on the real estate sector

Costlier EMIs and the limited ability of banks to transmit the rate hikes to customers may lead to the real estate sector becoming among the worst impacted sectors

In the upcoming Monetary Policy Committee (MPC) announcement, the Reserve Bank of India (RBI) is likely to go with a 50 basis point hike in the repo rate, experts told Business Standard.

"It's very likely that we will follow what is happening in the US and the rest of the world. It [rate hike] will be on the lines of 50 basis points," Nikhil Kamath, co-founder of stock brokerage firm Zerodha and True Beacon, said.

Kamath added that given the global inflation conditions and currency depreciation, the rate hiking cycle may continue for at least the next two announcements. The