Categories: Budget

Measures to reduce Home Loan Interest Rates – Jason Kothari

Bengaluru, April 29, 2016: “The RBI’s decision to have a 25 bps cut in the policy rate in the first bi-monthly monetary policy review for the 2016-17 fiscal, which began on April 1, is a timely measure to increase sentiment, and we are hopeful that it will also result in a reduction in home loan interest rates.

This will likely positively impact home buying, provided the banks heed the RBI’s recommendation for a ‘better translation of its policy actions, into the lending rates by banks’. Also noteworthy is the RBI’s mention that that inflation objectives are closer to being realised and price-rise will be at around the 5% mark for the remainder of the fiscal year. The RBI has also retained its GDP growth forecast at 7.6% on the assumption of a normal monsoon, which can have a significant impact. This bodes well for the overall macro-economic climate for business in general, including the real estate sector.”

Corporate Comm India (CCI Newswire)

The Property Times News Bureau

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