RBI's rate hike to push up costs: Realty, capital goods companies

Ramani Sastri, chairman and managing director (MD) of real estate firm Sterling Developers, said interest rates impact the cost of doing business

Real estate and capital goods companies are worried that the Reserve Bank of India’s rate hike on Wednesday will hurt their recovery as home and vehicle loans become costlier.

“A hike was inevitable, but we are now entering the red zone. Any future hikes will reflect markedly on housing sales,” said Anuj Puri, chairman of real estate advisory firm Anarock.

The hike will depress consumer demand. “The RBI is tasked with controlling the spiralling inflation in the country but must simultaneously be careful to not  hurt demand recovery. This is a tightrope walk under the best of circumstances. Overall, high