The Reserve Bank of India (RBI) announced its monetary policy on August 6 at 10 AM.
RBI Governor Sanjay Malhotra confirmed that there will be no change in the repo rate this time, and it will stay at 5.50%.
In contrast, the RBI had previously reduced the repo rate by 50 basis points in June, 25 basis points in April, and also made a cut in February.
This time, many were expecting another reduction, but it did not happen.
The RBI’s monetary policy meeting began on August 4 and concluded after three days, with the final decision shared on August 6.
Home Loan Borrowers Left Disappointed
A cut in the repo rate generally brings good news for those with home or car loans, as it lowers EMIs.
Many analysts believed that the RBI would announce a cut in the August policy, but that did not happen.
As a result, both existing loan customers and people planning to take new loans were disappointed.
RBI Governor Malhotra stated that the central bank is focusing on economic growth. However, experts now believe that there might be a repo rate cut in October.
When the repo rate is reduced, banks usually lower the interest rates on home, car, and other loans. This makes borrowing cheaper and helps reduce monthly EMI payments.
So far this year, the RBI has already cut the repo rate three times, which helped reduce EMIs. Still, borrowers were hoping for another rate cut in August.
Current Home Loan Interest Rates
Due to the total 100 basis points repo rate cut this year, home loan interest rates have dropped below 8% in most banks:
Bank of Baroda is offering home loans at 7.45%
Central Bank of India is offering them at 7.35%
State Bank of India (SBI) is offering them at 7.5%
These rates reflect the impact of the RBI’s earlier rate cuts.
