Rbi repo rate: A great news has emerged for home buyers. The EMI of the loan is expected to be even more cheap in the coming time. The Reserve Bank of India (RBI) can re -cut the repo rate. A report released on Tuesday has hoped that the repo rate in the RBI’s Monetary Policy Committee to be held in December may cut a 25 basis point (BPS). If this happens, the repo rate will come to 5.25 percent by the end of 2025. Considering the recently released inflation reduction in the month of June, the next two monetary policy committee meetings can decide to change the central back repo rate.

According to the information given in the HSBC Global Research report, the meetings of August and October have not estimated any changes in the repo rate. However, the report believes that the RBI will cut the interest rates of 25 basis points at the December meeting.

Retail inflation in June compared to May

The Consumer Price Index (CPI) based inflation in June stood at 2.1 percent in June against 2.8 percent of May. This decline in inflation has come due to the prices of food items, which is expected to decrease further. The report claimed that the second quarter of 2025 will be at the level of 2.7 per cent in the average inflation from July to September, lower than the RBI’s 2.9 per cent estimate.

RBI governor indicated cuts

In an interview to the news channel on Tuesday, Reserve Bank Governor Sanjay Malhotra spoke at the repo rate. During this, he said that both the low -inflation and development are equally responsible for cutting the repo rate. That is, whatever decision will be taken regarding the repo rate in the next meetings of the Monetary Policy Committee, it will depend on inflation and economic development. The RBI cut the repo rate by 0.25 basis points in February this year and then in April. This reduced it to 6.00 percent. After this, there was a reduction of 0.50 basis points again in June, after which the repo rate has come down from 6.00 per cent to 5.50 per cent.