The RBI’s decision on Wednesday to hike repo rate by 25 basis points will result in an increase in interest rates on home loans and may impact demand for affordable and lower mid-income housing segments, according to property developers and consultants. The RBI left the door open for more hikes. Credai National President Harsh Vardhan Patodia said the continuous increase in interest rates would dampen the sentiment of borrowing for individuals and businesses alike.

Also Read: RBI hikes repo rate by 25 basis points to 6.5 per cent