Overview

• LIC Housing Finance lowered its new home loan rate by 50 basis points to 7.50%.
• The revision took effect on June 19, coinciding with the company’s 36th Foundation Day and targeting improved affordability for first-time and middle-income buyers.
• Since February the RBI’s Monetary Policy Committee has cut the repo rate by 100 basis points to stimulate growth, with its most recent reduction in June.
• State Bank of India followed suit by trimming its repo-linked lending rate to 7.75% and its external benchmark rate to 8.15% from June 15.
• RBI Governor Sanjay Malhotra has signalled that further monetary easing is unlikely as the central bank shifts to a neutral policy stance.