The cut in the repo rate is not the end of policy making; it gives the Government an opportunity to take bold decisions.
Cos drafting the project report also conduct audits, followed by loan restructuring, complain bankers.
More needs to be done to reduce the delay in interest rate transmission in India.
As of now, the country’s largest lender State Bank of India has the lowest base rate in the banking system at 9.30 per cent.
RBI raising limits for foreign investors holding government bonds is more significant than the rate cut.
Although low rates are crucial for investment push, experts and the industry feel that more needs to be done, both by the Centre and state governments.
Bankers sought a reduction in the interest rates on small savings schemes on fears of flight of cash from bank deposits to such schemes.
Excerpts from an interaction with RBI Governor Raghuram Rajan after he announced the monetary policy.
Andhra Bank, Bank of India slash rates by 25 bps each; Axis, ICICI, others also hint at lowering rates.
Now that the RBI has finally cut rates, government must ensure monetary transmission is not impeded.
RBI in its fourth bi-monthly monetary policy for the current fiscal reduced the lending rate by 0.5 per cent with a view to boosting growth.
Rajan today cut interest rate by 0.50 per cent, double of what was broadly anticipated
RBI surprised the markets with a higher-than-expected rate cut of 50 basis points on Tuesday, boosting sentiment and fuelling hope of a revival in demand. SHAJI VIKRAMAN explains the Bank’s decisions.
50 basis point cut in the key policy rate, the repo rate, is seen as a booster to sentiment and hopefully will translate into higher demand.
The cut brought down repo rate to 6.75 per cent, the lowest in four-and-half-years.