07 Feb, 2019 1:02p.m.

RBI cuts repo rate by 25bps. EMIs likely to get cheaper

The RBI has taken a unanimous decision to cut its key interest rate by 25 basis points and eased the stance of the policy from 'calibrated tightening' to neutral, indicating that rates were unlikely to go up. 

Despite the Union Budget being seen as expansionary and fueling demand by some, RBI said that while the proposals are likely to boost aggregate demand by raising disposable incomes. The full impact of some of the measures is likely to materialize over a period of time, RBI governor Shaktikanta Das said in his monetary policy statement.

The repo rate is reduced by 25 basis points from 6.5 percent to 6.25 percent with immediate effect. Consequently, the reverse repo rate under the LAF stands adjusted to 6.0 percent, and the marginal standing facility (MSF) rate and the Bank Rate to 6.5 percent,” the statement said. The MPC also decided to change the monetary policy stance from calibrated tightening to neutral.

When the RBI cuts repo rate, banks are expected to pass on the benefit to their customers. If the banks decide to pass on the benefit of repo cut rate, then the auto, home, and other loans are likely to get cheaper.

Whatsapp Share Button

šŸ  Go to StaffCorner.com Home Page





Latest in Important News
Latest in Other News Sections
RBI cuts repo rates to 6.25. Loans set to get cheaper 🕑 04 Apr,19 12:42p.m.
Sree Chitra Tirunal Institute develops intravenous cancer drug 🕑 26 Mar,19 9:29p.m.
CPAO FAQ For the Beneficiaries Of NPS- Additional Relief Scheme 🕑 13 Mar,19 11:06p.m.
'One Nation One Card' mobility card launched 🕑 05 Mar,19 1:47p.m.
PFRDA working on minimum assured returns for NPS subscribers 🕑 24 Feb,19 1:58p.m.
EPFO's 8.65% interest rate for FY19 is actually equivalent to 13.5%. 🕑 24 Feb,19 11a.m.
EPFO to offer 8.65%, its 1st hike in 4 years 🕑 22 Feb,19 10:51a.m.
RBI cuts repo rate by 25bps. EMIs likely to get cheaper 🕑 07 Feb,19 1:02p.m.
Budget 2019 expectations : IT exemption limit likely to be hiked to Rs 5 lakh 🕑 17 Jan,19 9:29p.m.
Researchers develop plants that can remove cancer-causing pollutants 🕑 27 Dec,18 12:59p.m.