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
            2. 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
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