Diabytes
RBI monetary policy review: Repo rate slashed by 0.25% to 6%, lowest since 2010; loans may get cheaper
The cut in the repo rate by RBI will help in lowering interest rate for individual and corporate borrowers. It will thus make home, auto and corporate loans cheaper.
The cut in the repo rate by RBI will help in lowering interest rate for individual and corporate borrowers. It will thus make home, auto and corporate loans cheaper.
Rupee zoomed past the 64-mark against USD.
Finance Ministry welcomes RBI rate cut saying it is important step for sustained growth, consistent with India's potential.
Secretary,DEA, Shri S.C. Garg: Govt welcomes 25 basis points cut in the repo rate announced today by the MPC in its 3rd Bi-Monthly Meeting.
— Ministry of Finance (@FinMinIndia) August 2, 2017
Markets closed at day's low as RBI maintained neutral policy stance. Sensex ended 98.43 points lower at 32,476.74; Nifty fell 33.15 points to 10,081.50.
A time-bound single window clearance needed at state government level for faster approval to affordable housing projects: Patel
Reserve Bank working on next list of large loan defaulters for resolution: Deputy Governor N S Vishwanathan
There is scope for banks to cut rates further, especially for those sectors which have not benefited in the past rate cuts: Patel
Performance of sectoral indices post RBI policy announcement
The evolving momentum of inflation would be determined by the impact on the CPI of the implementation of house rent allowances (HRA) under the 7th central pay commission (CPC): RBI
Next MPC meeting on October 3 and 4, 2017.
Farm loan waivers by states may lead to fiscal slippages and undermine quality of public spending, entailing inflationary spillovers: RBI
Both Sensex and Nifty were down after policy announcement. The BSE Sensex was down 93.61 points or 0.29% at 32,481.56. Similarly, NSE Nifty was lower by 33.10 points or 0.33 percent at 10,081.55.
The 0.25% rate cut is a calibrated move keeping all the key issues about inflation prints in mind: Patel
This is the first rate cut since October 2016 and the interest rate is now at 6-year low.
RBI to review MCLR system of benchmarking lending rate by banks: RBI Deputy Governor Viral Acharya.
Growth forecast unchanged at 7.3% for the current fiscal: Patel
Inflation, excluding food & fuel, has fallen significantly in the last 3 months: RBI Governor Urjit Patel
4 MPC members voted for 0.25% cut. MPC Member Ravindra Dholakia voted for 0.25% cut. ED Michael Patra voted for status quo in Repo Rate.
RBI retained GVA growth forecast for FY18 at 7.3%.
On the state of the economy, the MPC is of the view that there is an urgent need to reinvigorate private investment, remove infrastructure bottlenecks and provide a major thrust to the Pradhan Mantri Awas Yojana for housing needs of all.
The decision of the MPC is consistent with a neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 percent within a band of +/- 2 percent, while supporting growth.
Consequently, the reverse repo rate under the LAF stands adjusted to 5.75 percent, and the marginal standing facility (MSF) rate and the Bank Rate to 6.25 percent.
RBI slashed repo rate (interest rates) by 0.25% to 6%.
RBI is likely to keep CRR unchanged at 4%.
Current Policy Rates
Repo Rate- 6.25%
Reverse Repo Rate- 6%
Marginal Standing Facility Rate (MSF)- 6.50%
Bank Rate- 6.50%
Cash Reserve Ratio (CRR)- 4%
Statutory Liquidity Ratio (SLR)- 20%
Performance of sectoral indices on NSE ahead of policy announcement.
Both Sensex and Nifty were slightly lower ahead of policy announcement. Interest rate sensitive bank, realty and auto stocks are in focus.
RBI’s monetary policy committee (MPC) is scheduled to announce its decision on interest rates at 2.30 pm today.
The Reserve Bank of India (RBI) is likely to cut its main policy rate (repo) by 0.25 percent to 6 percent - the lowest since November 2010 (6.5-year low).
Also Read: RBI Monetary Policy Review: Why MPC should vote for rate cut today?
The central bank last cut its key interest rate in October 2016.
At its second bi-monthly monetary policy review of the fiscal on June 7, the RBI maintained status quo on its repo or short-term rate for lending to commercial banks, at 6.25 percent.
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