RBI Cut Down Repo Rate | Home & Car Loans Could Get Cheaper–Details
RBI Cut Down Repo Rate
RBI Cut Down Repo Rate: Big relax to the common people!!! On Wednesday, RBI Cut Down Repo Rate by 25 basis points to 6 per cent - the lowest since November 2010. Reverse repo rate has been cut by 0.25 per cent to 5.75 per cent after retail inflation, led by softer food prices, fell to a more than five-year low in June. “Repo rate is the rate at which the central bank of a country lends money to commercial banks in the event of any shortfall of funds. Repo rate is used by monetary authorities to control inflation”. The governor of Reserve Bank of India has announced that “Home & Car Loans Could Get Cheaper”. According to this detail, individual who have taken 30 lakh rupees home loan for 20 years then he/ she will get deduction of Rs. 1.14 lakh on the total amount.
This must be the big news as the deduction in rates comes against the backdrop of slowing credit growth, very low inflation and low economic growth. RBI governor Urijit Patel said that “These factors... opened up some space for monetary policy accommodation”. “The MPC will continue monitoring movements in inflation to ascertain if recent soft readings are transient or if a more durable disinflation is underway.” It must be an important step in order to ensure sustained economic growth. To gather more details concerning RBI Cut Down Repo Rate, scroll down the page and go through the information given on this page by the expertise team unit of www.privatejobshub.in
"Implementation of farm loan waivers by states may result in possible fiscal slippages and undermine the quality of public spending, entailing inflationary spillovers. Moreover, the timing of the States' implementation of the salary and allowances award is critical - it is not factored into the baseline projection in view of lack of information on their plans," the RBI said. In fiscal 2016-17, growth in gross fixed capital formation, a measure of investment demand, was 2.38%. Four members of the MPC, including RBI governor Urjit Patel, voted to get 25 bps reductions. Whole economy A basis point is 0.01 percentage point. It is an important step necessary to converge toward the appropriate real monetary conditions. The country's largest lender cut interest rate on savings bank accounts on Monday to 3.5 per cent from 4 per cent on balance of Rs 1 crore and below.
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