Reserve Bank of India appointed committee on Household Finance has suggested that banks link their home loan rates to the RBI’s repo rate, the rate at which it lends to banks.
In the past three years the central bank has reduced the policy rate by 200 basis points, but the weighted average lending rates have fallen by 145 basis points. A basis point is 0.01 percentage point.
Important Takeaways from Above News-
- RBI Headquarters in Mumbai.
- The 24th Governor of RBI is Dr. Urjit Patel.
Source- The Economic Times