RBI’s rate cut lets homebuyers borrow more without raising EMIs. With a neutral stance, further cuts are unlikely, making it a good time to buy for those ready

The Reserve Bank of India's 50 bps rate cut on Friday is likely to lead to a reduction in deposit interest rates, hurting bank customers who have enjoyed higher returns amidst fierce competition for deposits.

In a move that surpassed expectations, the Reserve Bank of India on Friday cut the repo rate by 50 basis points to 5.5%, offering relief to borrowers with likely lower EMIs. The cut - double the widely anticipated 25 basis points - takes the total reduction since February to 100 basis points.