Dubai: India has raised its interest rate again, but by 0.25 per cent as policymakers seem to think that the worst of the inflationary pressures are behind them. The lower hike would definitely be a boon for India's consumers and homeowners with mortgages to pay off.

But for new home buyer aspirants, it will still be another cost burden to absorb over the last 12 months. According to Anuj Puri, Chairman of Anarock Group, "The 25 bps rate hike is much along the expected lines. With repo rates at 6.5 per cent, there could be some repercussions on housing uptake as home loan interest rates will head further north.

"The rates had already crept up after five consecutive rate hikes over the last one year. This will add to the financial burden on homebuyers as apart from home loan interest rates, property prices have also inched up in the recent past two to three quarters."