Best Time To Buy A House? Home Loan Interest Rates May Dip Soon | Business News

Last Updated:July 17, 2025, 08:54 IST

RBI Governor Malhotra stated that the current retail inflation rate is at a six-year low. If this trend continues, there may be room for another interest rate cut

RBI Governor Sanjay Malhotra has hinted at a possible repo rate cut, which could directly benefit loan seekers. (News18 Hindi)

If you’re planning to buy your dream home, now might be the best time. Home loan interest rates are already low, and there’s potential for further reduction. Reserve Bank of India (RBI) Governor Sanjay Malhotra has hinted at a possible cut in the repo rate, which could directly benefit loan seekers.

Since home loans are typically long-term and involve large sums, even a slight decrease in interest rates can result in significant savings for home buyers.

In a conversation with CNBC-TV18, RBI Governor Malhotra stated that the current retail inflation rate is at a six-year low. If this trend continues, there may be room for another interest rate cut. He added that the Monetary Policy Committee (MPC) always considers factors that strike a balance between economic growth and the needs of the common citizen.

Growth Remains Priority

Malhotra emphasised that the RBI’s responsibility goes beyond managing inflation and offering cheaper credit. Supporting economic growth is equally important. He stressed that every decision made by the MPC takes both inflation and economic expansion into account.

The RBI Governor’s remarks come after the release of June’s inflation data, which showed retail inflation at its lowest point in six years, largely due to falling food prices. This figure is even lower than the RBI’s earlier estimate of 3.7%.

Focus on GDP Growth

Malhotra reiterated that the RBI has projected India’s GDP growth rate at 6.5% for the current financial year. With a favourable monsoon and strong consumer sentiment, combined with ongoing trade discussions, the economy is well-positioned for expansion.

Since February 2025, the RBI has reduced the repo rate by 1%, including a 50 basis point cut in its most recent meeting. If inflation remains within target, another rate cut may be on the horizon. The current repo rate stands at 5.5%.

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