Home loan borrowers continue to smile as RBI reduces repo rate by 25 basis points (bps). Post the announcement, the repo rate has changed from 6.00% to 5.75%. This is the 3rd consecutive rate cut by the central bank this calendar year. The borrowers can hope for lesser rates in the future as the government changes the monetary policy stance from neutral to accommodative.
The reverse repo rate has also been reduced from 5.75% to 5.50%. The reduced rates are beneficial for home loan borrowers as the home loan EMIs are likely to go down assuming banks will reduce the home loan interest rate.