RBI's policy surprise: Pause on rate cuts may hit real estate, auto sectors

The Reserve Bank of India’s (RBI’s) move to pause rate cuts will hit the beleaguered real estate and auto sectors hard. These sectors were expecting another rate cut by the central bank to help revive sagging consumer demand.

CEOs said benefits from the previous rate cuts are yet to play out completely and the real estate industry is still reeling from the liquidity crisis as consumers are not coming forward to buy new houses or cars.

Real estate developers were expecting a rate cut of 50 to 100 basis points which would have provided a boost to the government’s recent