New Delhi, Feb. 13 -- Affordable housing, the weakest link in the current real estate boom, may get a shot in the arm with the Reserve Bank of India's (RBI) rate cut last week. However, for a meaningful impact, there needs to be another round of rate cuts and more. Mint explains why:
In the first rate cut in five years, the RBI on Friday slashed the repo rate by 25 basis points, taking the policy rate to 6.25%. The repo rate is the interest rate at which commercial banks borrow from the central bank. Home loan borrowers, who have taken floating-rate loans, would see their equated monthly instalments (EMIs) reduce when the benefit of a lower repo rate is passed on to consumers. This may be fully realized in the next three to six months, t...
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