RBI slashes rates to 0.25%, easing mortgage costs for homebuyers nationwide
The Reserve Bank of India (RBI) has cut interest rates by 0.25% to support economic growth, making mortgage rates more affordable for homebuyers. This move follows a drop in inflation, giving the central bank room to ease borrowing costs. The decision aims to keep the economy strong while ensuring prices remain stable.
The rate cut comes after consumer price inflation fell, creating space for lower mortgage rates. The RBI’s Monetary Policy Committee (MPC), made up of six members—three from the central bank and three government-appointed experts—approved the reduction. Their goal is to sustain economic momentum without risking financial instability.
Cheaper credit is now available to borrowers, thanks to the rate cut and additional liquidity measures. The RBI has injected Rs 1.45 lakh crore into the system to boost economic activity. This could encourage more lending, particularly in housing, real estate, and small businesses.
The decision is expected to help homebuyers, especially in the affordable and mid-segment housing markets. Lower mortgage rates may also support micro, small, and medium enterprises (MSMEs) by making loans more accessible. The RBI has also announced a two-month drive starting January 1 to resolve pending ombudsman complaints.
The rate cut leaves room for further easing if needed to strengthen GDP growth. With inflation under control and liquidity measures in place, the RBI’s actions aim to keep the economy expanding. PNC Bank customers and other borrowers are likely to benefit from the lower interest rates.
