Home Loan Interest Rate:GST has reduced the prices of food and clothes, now RBI will make houses cheaper! 

RBI Repo Rate: The government has made everyday things cheaper for the people by cutting GST rates. From food to clothes, insurance, everything has become cheaper. 

After cheap goods, now there is hope of getting another gift, which is related to your house. You may soon get the gift of cheap home loan. RBI can give the gift of cheap home loan by cutting the repo rate. 

If the report is to be believed, this year RBI can cut the interest rate of the loan by cutting the repo rate by 50 basis points. After the repo rate cut, the loan will become cheaper. 

The monetary committee meeting is going to be held by RBI in October next month. That is, after cheap roti-clothes due to GST, the gift of cheap house will also be available due to RBI's decision. 

Home loans may become cheaper  

Retail inflation will see a decline in the coming times, which may give the Reserve Bank of India (RBI) enough room to cut the repo rate by up to 50 basis points. 

This information was given in a Morgan Stanley report. The report said that the trend of headline inflation is likely to remain soft due to disinflation arising from low prices of food products, reduction in GST rates and lack of input price pressures. 

We estimate that headline inflation will average 2.4 percent annually in FY26, which will enable the RBI to cut the repo rate by 25 basis points (0.25 percent) each in October and December. 

According to the report, retail inflation has been running below the RBI's target of 4 percent for the last seven months, one of the reasons for which is the fall in food prices. 

However, the main inflation rate remains in the range of 4.2 percent, while the main inflation rate has remained at 3.1 percent and below 4 percent for the last 22 months, indicating a softening of inflation.  

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The report further said that this trend of low inflation is driven by a combination of several factors, including a favorable outlook driven by continued softening of food prices and better crop production. 

Rationalization of GST is expected to lead to a downward trend in overall price levels. The report said that headline inflation may average 2.6 per cent on an annual basis in the second half of FY 2025-26, while it may remain at 2.4 per cent in the entire financial year. 

Due to GST reforms, domestic demand may increase from the second half of the current financial year. However, due to tariffs, the demand coming from abroad may be affected. IANS