On Thursday, Reserve Bank of India (RBI) decided to maintain the repo rate at a stable rate of 6.50 percent during its bimonthly monetary policy review. The repo rate was raised by 250 basis points to bring inflation within its tolerance limit since May last year.
The RBI has squeezed the respite button on the repo rate climbs to check the headway the national bank has made up until this point, sending positive opinions to the land business and homebuyers.
RBI’s Stance
The recent rise had influenced the RBI’s position in interest rates because homebuyers were waiting for the central bank to pause before borrowing money for a home.
Existing home loan borrowers already feel the effects of back-to-back interest rate increases because their loan terms have increased significantly. Many people’s EMIs have increased, and they want to reduce their financial burden by refinancing or paying off part of their loans.
Adhil Shetty, the CEO of Bankbazaar.com, says, “After raising the repo rate by 250 premise focuses since May last year to bring expansion inside its resilience limit. The RBI has squeezed the respite button on the repo rate climb to check the headway the national bank has made up to this point, sending positive feelings across areas.”
If reports are to be believed, the US Federal Reserve will announce its most recent rate increase, and India was anticipating the same. Many people thought that this would be the final repo rate increase. However, the RBI halted the interest rate increase, granting homebuyers relief.
