look news india
The government has made the prices of everyday needs cheaper by cutting GST rates. From this decision of the government, everything has become cheaper, from food and drink to clothes and insurance. After cheap goods, now RBI has taken an important decision to make it easy to build a house.
The central bank will soon give a gift of cheap home loan to the common man. The RBI can give a gift of cheap home loan by cutting the repo rate. According to reports, this year the RBI can reduce the interest rate on the loan by cutting a 50 basis point in the repo rate. The loans will become cheap after the repo rate cut. The RBI monetary committee meeting will be held in October next month. In this, RBI can take an important decision to make home construction cheaper.
Home loans can be cheap:
Retail inflation is expected to decrease in the coming days, which can give adequate scope to the Reserve Bank of India (RBI) to cut the repo rate up to 50 basis points. The main inflation in FY 26 is estimated to be 2.4 percent annually. With this, RBI will be able to cut the repo rate in October and December by 25 basis points (0.25 percent).
According to the report, retail inflation remains below 4 percent for the last seven months. This is also due to the fall in the prices of food items. However, the main inflation rate is within a radius of 4.2 percent. But for the last 22 months, the main inflation rate remained below 3.1 percent to 4 percent. This is a sign of softening in inflation.
Continuous decline in food prices and better crops: Randnessing GST is expected to reduce the overall price level. Inflation is estimated to be 2.6 percent annually in the second half of FY 2025-26. However, it is expected to be 2.4 percent during the entire financial year, the report states. Due to GST reforms, domestic demand is likely to increase from the second half of the current financial year. Due to tariff, demand from abroad may be affected.