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Home truths about RBI interest rate cut
Updated On: 18 April, 2012 07:56 AM IST | | Varun Singh
While home loans may become cheaper in the coming months by about 0.50 per cent, experts say property prices are unlikely to come down, and, in fact, may rise further
The key interest rates’ cut — by an unexpectedly high 50 basis points — announced by Reserve Bank of India (RBI) yesterday is likely to bring some relief in these times of fiscal uncertainty, but perhaps not to the common man. Top banks are expected to reduce home loan rates, but not immediately. That’s because bankers are looking to clip both deposit and lending rates in order to maintain their net interest margin (NIM).

Boon or bane? Despite RBI cutting repo rate and reverse repo rate by 0.50 per cent, real estate rates in the city may rise. Representation pic
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