Spooked by a falling growth and consumption, the RBI today cut interest rates for the first time in nine months reducing the repo rate and the cash reserve ratio by 0.25 percent. The central bank hopes that the two measures, when combined, will put sufficient pressure on banks to cut interest rates on EMIs for auto and home loans over the next few days in effect helping higher growth and consumption.
This is clearly good news for the consumers but may be short-lived. The bottom line is that the central bank today bowed to boost sentiment for the short term but raised enough red flags that suggest today’s rate cut may not be a long term trend. Read More>
The Reserve Bank today slashed its key interest rates by 0.25 per cent and released Rs 18,000 crore additional liquidity into the system
Will the RBI cut interest rates? That’s the million-dollar question just 24 hours before the first credit policy of 2013 is tabled. The central bank is expected to cut repo rates for the first time in nine months; a move that may unstick the machines of the consumption economy and bring brief relief to high interest costs for corporate India. Read More>
Rajiv Anand, Managing Director and CEO, Axis Mutual Fund, speaks to Tehelka on the slashing of RBI rates, increase in consumption of gold, and the impending fiscal deficit. Read More>