On Thursday, HDFC chairman Deepak Parekh while addressing the annual general meeting of HDFC said the demand for housing is unlikely to be impacted by interest rate increases in the financial system.
He said “In fact, current interest rates on home loans are still below pre-pandemic levels. Further, a home loan is for a long tenor and during this period there are bound to be both, upward and downward interest rate cycles”.
“This position is now being unwound. It was unrealistic to believe that such low interest rates and high levels of surplus liquidity would sustain” the HDFC chairman said.
The RBI had raised the policy Repo rate by 90 basis points to 4.90 per cent since May this year to tame inflation.
While growth expectations in India too have been tempered, India is still expected to be amongst the fastest growing major economies with gross domestic product (GDP) growth estimated at above 7 per cent for the current year, Parekh said.