18.9 C
New Delhi
Sunday 15 December 2019
Economy Repo rate cut again? Maybe, but when will my...

Repo rate cut again? Maybe, but when will my EMI reduce?

The repo rate has been reduced on multiple occasions in the past; however, banks are reluctant to pass on the benefit proportionately to customers

New Delhi: If all goes well, once again the EMI against your loan may reduce. Governor of the Reserve Bank of India Shaktikanta Das has indicated there would be another reduction in the repo rate.

Das said, “Today we are seeing that prices are stable. Inflation is far below 4%. We expect inflation to remain down for the next 12 months. In such a situation, especially at a time when growth has softened, there is some scope for further reduction in the policy rate.” However, he declined to say anything about the RBI’s estimate of the current financial year growth. He said that whatever is to be said on this will be made public with the announcement of monetary policy review on 4 October.

The three-day review meeting of RBI’s Monetary Policy Committee is starting on 1 October. The RBI reduced its policy rate (aka repo rate) four times this year. On 7 August, the central bank had reduced the repo rate by 35 basis points (bps) to 5.40%. The previous cut was announced in June. The one before that was announced in April. There had been repo rate cuts in the previous years, too. However, lenders like banks have been noticed to be quite reluctant to pass on the benefit proportionately to common, middle-class borrowers.

Proposal of repo rate cut inspired by response to corporate tax cut?

On Friday, the Union government announced a cut in the corporate tax. According to Das, after this decision of the government, foreign investors are turning to India. The RBI governor said, “This is a very bold and positive step. As far as international investors are concerned, corporate tax rates in India have become very attractive compared to emerging markets in ASEAN countries and other parts of Asia. In my opinion, today India has reached a very strong position in the competition. This will attract more investment.”

Das sees the government’s decision as a booster for domestic investors as well. He said that companies would now have more money left to increase capital investment. On savings, he said some companies would increase their investment and some may reduce their debts. This will improve their balance sheets according to him.

Subscribe to our newsletter

You will get all our latest news and articles via email when you subscribe

The email despatches will be non-commercial in nature
Disputes, if any, subject to jurisdiction in New Delhi

Leave a Reply

Opinion

Justice That Is Instant Is Travesty

But neither the state nor society can wash their hands off this social craving for settling scores in the name of doing justice to the victim

Karnataka Voters Punished INC, JDS Leaders

Even the BJP was not confident of the result even as their leaders kept saying for public consumption they were winning all the 15 seats

The United States Of The World

The United States, stereotyped as the land of plenty and plentiful guns, is still a destination of choice for people from across the world

प्याज़ के आँसू न रोएँ — महंगाई से किसान, उपभोक्ता दोनों को फ़ायदा

जिस अल्प मुद्रास्फीति की वजह से वे सरकार से बहुत खुश थे, उसी 1.38 प्रतिशत की खाद्यान्न मुद्रास्फीति के कारण किसानों को अपने पैदावार के लिए समुचित मूल्य नहीं मिल रहे थे

CAB Can Correct Wrongs Of NRC

… if the government can fix the inept bureaucracy and explain what happens to those marked as aliens, as the neighbours are not taking them back
- Advertisement -

Elsewhere

Gurdwara discards 30 kg of cooked dal, realising it was ‘plastic’

The historic Gurudwara Bangla Sahib realised again the next day that the lentils were fake but got alerted before the dal was cooked

Prashant Kishor to campaign for AAP in Delhi election

Prashant Kishor has been successful as an election strategist in most campaigns: BJP at Centre 2014, JDU in Bihar 2015, INC in Punjab 2017

Service sector picks pace; trade deficit reduces

Service exports stood at $ 17.70 billion in October, registering a growth of 5.25%; trade deficit declined from $ 17.58 billion in 2018 to $ 12.12 billion

Sabarimala verdict review: SC snubs Fathima, Bindu

Ignoring the court decision to refer the Sabarimala review pleas to a 7-judge bench, the petitioners tried to get an order to enter the shrine immediately

Andhra Cabinet okays Disha Bill that dictates judiciary

While ordering the prosecution to complete its work in 14 days is permissible, Andhra Pradesh cannot set a time limit for the judiciary

You might also likeRELATED
Recommended to you

For fearless journalism

%d bloggers like this: