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

The Reserve Bank of India has cut repo rate by 25 bps to 6.25% This policy review was Urjit Patel’s maiden announcement as RBI Governor and also the first where the decision on rates is made on the advice of a newly set up six-member monetary policy committee or MPC. RBI said the Momentum of growth expected to quicken and the decision in line with the inflation target of 5% for the end of the this fiscal. The six-member panel has equal representation from RBI and the government. The stock markets were in the green following the RBI policy announcement. Reverse repo rate under the LAF stands adjusted to 5.75%, and the marginal standing facility rate and the Bank Rate to 6.75 %.

  1. G
    goldenfig
    Oct 5, 2016 at 11:14 am
    Repo rate now 6.25%. Fds also suffer lower rate of interest. This is a retrograde anti people's policy of the government. Keep fixed deposit rates at 10% simple. Let the corporates and other consumers who want loan at a cheaper rate invest in FDs so that they can, if they wish plough back the higher interest rate earnings from Fds into their consumption expenses. Making the repo rate less and making the FD rate less robs Peter to pay Paul, hitting senior citizens hard.Get the message Jaitley? Please abjure useless actions like nuclear energy programs and living off capital instead of income. Do you know that a house which cost Rs 2 lakhs in 1984 costs now Rs 2 Cr- a 300% inflation rate per year-living off capital is suiicidal. Sand is scarce! Stop this madness.
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