India, Feb. 7 -- After a tax cut in Budget 2025, the country's middle class gets a gift of an interest cut. The Reserve Bank of India, under the new governor, Sanjay Malhotra, on February 7 announced a repo rate cut of 25 basis points to 6.25% for the first time in nearly five years. The reduction in repo rates is expected to provide relief to existing homebuyers as it helps lower their equated monthly instalments on home loans and ignite overall homebuying sentiment.

Real estate experts say the rate cut will enhance affordability and boost housing demand. The rate decision comes soon after the government slashed personal tax rates in Budget 2025 to boost spending and stimulate growth.

Having said that, a few believe that the rate cut m...