Home loan is going to be cheaper, RBI can cut the repo rate again; a Claim made in the report.

RBI Repo Rate: A report released on Tuesday claimed that the Reserve Bank will cut the repo rate by another 25 basis points in the Monetary Policy Committee (MPC) meeting to be held in December.

RBI Repo Rate: If you are dreaming of buying a house, then there is good news for you. Instalments are going to get cheaper in the coming time. The Reserve Bank of India (RBI) can cut the repo rate again. A report released on Tuesday said that the repo rate will be cut by another 25 basis points in the Monetary Policy Committee (MPC) meeting to be held in December. With this, the repo rate will be 5.25 percent by the end of the year 2025. In view of the reduction in inflation in recent months, the Reserve Bank is unlikely to make any change in the repo rate in the next two MPC meetings.

Disclosure in HSBC report

HSBC Global Research report said, it is expected that no change will be made in the repo rate in the August and October meetings. However, we believe that the Reserve Bank will make a final cut of 25 basis points in the interest rates in the December meeting, which will make the repo rate 5.25 percent by the end of 2025.

Inflation reduced in June

In the month of June, the Consumer Price Index based inflation rate came down from 2.8 percent in May to 2.1 percent in June. This decline in inflation has come due to cheap food items, which is expected to decrease further. The report also claimed that the average inflation in the second quarter of 2025 will be at the level of 2.7 percent, which is less than the RBI's estimate of 2.9 percent.

Governor Sanjay Malhotra said this

Here, while talking about the repo rate, Reserve Bank Governor Sanjay Malhotra said in an interview to CNBC TV18 on Tuesday, both decreasing inflation and slowdown in growth are equally responsible for the reduction in repo rate. That is, whatever decision will be taken regarding the repo rate in the next meetings of MPC, it will depend on inflation and economic growth. The Reserve Bank first cut the repo rate by 0.25 basis points in February and then in April this year. Due to this it came down to 6.00 percent. After this, a cut of 0.50 basis points in the repo rate was announced in June, due to which it came down from 6.00 percent to 5.50 percent.