RBI cuts repo rate but when will price of commodities be cheaper?

Shedding his hawkish stance, Reserve Bank Governor Raghuram Rajan Thursday sprang a surprise by cutting interest rates by 25 basis point a move that is likely to result in cheaper home and auto loans.

Why consumers will barely benefit from the RBI move?

The bottom line is that raising deposits will continue to be a challenge for banks until the genie of inflation is put back in the bottle. And lending rates may come down a bit, but not to the extent that any consumer will be celebrating.