RBI cuts rep rate by 25 bps: Your loans will now get cheaper

RBI rate cut: The monetary policy committee chaired by new Governor Urjit R Patel met for two days and decided to cut the repo rate from 6.25 per cent.

Written by Khushboo Narayan | Mumbai | Updated: October 4, 2016 3:49 pm
reserve bank of india, monetary policy committee, inflation rates, inflation rate monetary policy committee, urjit patel, business news, india news, indian express RBI policy review: This was the first time that rates were set by a panel rather than the governor alone.

Loans will get cheaper for customers as the Reserve Bank of India on Tuesday cut its key policy rate by 25 basis points in its fourth bi-monthly monetary policy review for the year citing a declining momentum in food inflation. All six members of its newly formed monetary policy committee voted in favour of a rate cut.

This was the first time that rates were set by a panel rather than the governor alone. The monetary policy committee chaired by new governor Urjit R Patel met for two days and decided to cut the repo rate from 6.25 per cent.

WATCH VIDEO: Reserve Bank Of India Cuts Repo Rate By 25 bps To 6.25%

 

Also Read: RBI cuts repo rate by 25 bps in fourth bi-monthly policy

Consumer price inflation had decelerated to 5.05 per cent in August from over 6 per cent in July as good monsoons and better than expected sowing brought down food inflation. Growth pick-up, however, has been slow with a lower than expected first quarter GDP growth at 7.1 per cent.

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  1. g
    guru592006
    Oct 4, 2016 at 12:28 pm
    Almost 1 lakh crore has been thrown in the market because of 7 pay commission. The effect will be there.
    Reply
    1. L
      l s
      Oct 4, 2016 at 2:22 pm
      Loans for the bussiness sharks will be at lowerinterest level. Means they get much benifit, dealing in hundreds of crores, regularly.lt;br/gt;lt;br/gt;Interest rates regularly being lowed, since jaitley took over Means those hunfreds of crores people( poor and low income group)depending on f d interest for a living, will have to tighten their belts or go to sleep with only one meal a day.lt;br/gt;lt;br/gt;Purely anti poor and anti lower income group cl wrongful act.lt;br/gt;lt;br/gt;This govt will pay a heavy price with such acts of the F M, who is known to be always pro-rich.
      Reply
      1. L
        L bhadrapati Devi
        Oct 4, 2016 at 4:33 pm
        CPI is an index number i.e. specialized average of representative commodities. Only increase in price of pulses can't represent the inflation of India. Also, please look state-wise CPI inflation from CSO website.
        Reply
        1. L
          L bhadrapati Devi
          Oct 4, 2016 at 4:40 pm
          How you claim when interest rate is lowered by 25 basis point may be anti-poor? If poor people get loan at lower interest may be at their interest.
          Reply
          1. L
            L bhadrapati Devi
            Oct 4, 2016 at 4:34 pm
            What is wrong brothers? The issue is national economic interest not my personal ideny.
            Reply
            1. L
              L bhadrapati Devi
              Oct 4, 2016 at 4:29 pm
              You are wrong. Please update your knowledge about CPI inflation of August 2016.
              Reply
              1. L
                L bhadrapati Devi
                Oct 4, 2016 at 10:23 am
                It is a good sign of easing of monetary policy in the height of favourable condition in the inflation front. It is time to fight in the growth front.
                Reply
                1. A
                  Ashok Mazumdar
                  Oct 4, 2016 at 10:49 am
                  Fake Attempts to Show GDP growth is All Time At Historical High.
                  Reply
                  1. M
                    Manzoor
                    Oct 4, 2016 at 10:43 am
                    Still inflation is around 6.5% and RBI expect that by March'2017 it will be 5%. And everyone knows that expected inflation % never happened(achieved).
                    Reply
                    1. V
                      Vihari Naidu
                      Oct 4, 2016 at 11:34 am
                      Bro, tell me state that you live in. I don't know how your state managed to maintain low inflation. Pulses are still costly in my state..... :/
                      Reply
                      1. V
                        Vihari Naidu
                        Oct 4, 2016 at 11:33 am
                        My savings will also get low interest and coupled with high inflation, i would earn more money keeping my ry with me rather than keeping it in the bank.....
                        Reply
                        1. S
                          Sawan
                          Oct 4, 2016 at 12:53 pm
                          Oh! He (it is a he posing as a she) is probably someone who gets free meals at the RSS and sleeps in the sakhas ever since his Congress supporting parents drove him away from their house for his violent disposition. He probably does not even bother beating up his elders if they criticise his revered icons.
                          Reply
                          1. S
                            Sawan
                            Oct 4, 2016 at 12:48 pm
                            The banks do not bother as they will get all the money they require at low interest rates (repo rate) from the RBI. The Industrialists will be pleased as they will get subsidised money (from the low interest paying Depositors) and so will be the bhakts as they are subsidised by the ruling Party. The Government retirees are hardly impacted as their pension is going to go up anyway every year even if the fudged up inflation figures are low. The aam janata will be left sucking their thumb and they will keep using their index finger to vote for the BJP believing in their jumla of acchhe din.
                            Reply
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