Repo rate increases will impact Onam market.

The increase could be a gloom for the state, as well as consumers . More than 60% of Keralas supply chain is conducted during Onam .

Kochi: The trade bodies in the city have reported that the Reserve Bank of India's announcement of a repo rate hike on Friday will have a significant effect on the business in the state, as well as consumers, according to a press release from the Cochin Chamber of Commerce and Industry.The increase could be a gloom for the state, as well as consumers, who were eager to celebrate Onam after a two-year Covid-induced downturn.During Onam, more than 60% of Kerala's supply chain is conducted, and many business houses have already begun offering attractive discounts to attract customers.According to the release, such attempts would face a significant decline as a result of the repo rate hike, which would force banks to pay more for the money they borrow from RBI, which they would then pass on to the borrowers by raising interest rates on loans.According to Vivek Krishna Govind, senior partner, Varma & Varma Chartered Accountants, the increase would have a detrimental effect on the festive season as well as on potential home buyers.