India’s central bank has cut repo rates by 25 basis points to 5.75%, the lowest since 2010. The cut by the Reserve Bank of India was the third this year, and RBI hinted at more such cuts to come.
The move is expected to make mortgages, auto loans and other borrowings cheaper, but the final call rests with respective banks.
Repo is short for repurchase agreement, a form of short-term borrowing mainly in government securities. A dealer sells the underlying securities to investors, to raise money, then buys them back shortly afterwards – usually the following day – at a slightly higher price. The repo rate is the rate at which the RBI lends money to the commercial banks, in case of any shortfall of funds.
Following the past two rate cuts, the banks have been reluctant to pass on the benefits to customers. The lenders are finding it difficult because they are facing a mismatch between deposits and credit growth.
The six members of the monetary policy committee of the RBI in their bi-monthly meeting unanimously decided on cutting repo rates in order to boost sagging private consumption. It may be recalled that during the previous committee meeting in April the RBI Governor Shaktikanta Das and Deputy Governor Viral Acharya were at loggerheads over rate cuts.
Also Read: India’s RBI chief, deputy clash over rate cut
Benign inflation and buffer food grain stocks emboldened the central bank to take such a step. The return of the Narendra Modi Government to power has also generated hope of fiscal responsibility.
The RBI Governor has expressed concern about weakening growth impulses, adding that the central bank has changed its policy from “neutral” to “accommodative” and rate hikes are now off the table, Times of India reports.
I have been checking out many of your stories and i can claim pretty good stuff. I will surely bookmark your blog.
certainly like your website but you need to check the spelling on several of your posts. A number of them are rife with spelling issues and I find it very bothersome to tell the truth nevertheless I will surely come back again.
I loved as much as you’ll receive carried out right here. The sketch is attractive, your authored material stylish. nonetheless, you command get got an shakiness over that you wish be delivering the following. unwell unquestionably come further formerly again as exactly the same nearly very often inside case you shield this hike.
Hi, i think that i saw you visited my website thus i came to “return the favor”.I’m trying to find things to improve my site!I suppose its ok to use some of your ideas!!
Awsome site! I am loving it!! Will come back again. I am bookmarking your feeds also.
You certainly deserve a round of applause for your post and more specifically, your blog in general. Very high quality material!
I was just looking for this info for a while. After six hours of continuous Googleing, finally I got it in your web site. I wonder what’s the lack of Google strategy that don’t rank this type of informative sites in top of the list. Normally the top websites are full of garbage.
I dugg some of you post as I cogitated they were handy invaluable
What i do not understood is in reality how you are not really a lot more neatly-liked than you may be now. You are very intelligent. You recognize therefore significantly in relation to this topic, made me in my opinion believe it from numerous various angles. Its like men and women don’t seem to be fascinated until it?¦s something to do with Woman gaga! Your personal stuffs great. Always deal with it up!
You are my inhalation, I own few blogs and rarely run out from to post .
hello!,I like your writing very a lot! share we keep in touch extra approximately your article on AOL? I require a specialist on this space to solve my problem. Maybe that’s you! Looking forward to peer you.
It is in reality a nice and useful piece of information. I?¦m glad that you just shared this useful information with us. Please stay us up to date like this. Thank you for sharing.
Hi there! I just wanted to ask if you ever have any trouble with hackers? My last blog (wordpress) was hacked and I ended up losing several weeks of hard work due to no back up. Do you have any solutions to protect against hackers?
Excellent post. I was checking continuously this blog and I am impressed! Very helpful information specifically the last part 🙂 I care for such information much. I was looking for this certain info for a long time. Thank you and best of luck.
Hello.This article was extremely interesting, particularly since I was searching for thoughts on this subject last couple of days.
Thanks for any other great article. Where else may just anybody get that type of info in such a perfect way of writing? I’ve a presentation next week, and I am at the look for such information.
Deference to website author, some fantastic information .
Please let me know if you’re looking for a article writer for your blog. You have some really great posts and I feel I would be a good asset. If you ever want to take some of the load off, I’d really like to write some articles for your blog in exchange for a link back to mine. Please shoot me an email if interested. Regards!
I got what you mean ,saved to favorites, very decent website .
Hi, Neat post. There’s a problem with your website in internet explorer, would test this… IE still is the market leader and a large portion of people will miss your wonderful writing because of this problem.