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RBI maintains repo rate at 5.15%, reduces GDP estimate from 6.1% to 5%

India, rbi repo rate, Repo rate, Monetary policy, Interest rates, what is repo rate, interest rates India, share markets today, Indian banks, MPC meeting

Rbi repo rate: With GDP growth reaching a 6-year low of 4.5% in the July-September quarter, speculation was rife that the Reserve Bank would once again cut interest rates, but policy rates change after a three-day policy meeting Not done. Although, the central bank lowered the GDP growth rate from 6.1% to 5% for the current fiscal year and raised the inflation rate from 3.5% to 3.7%.

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Already, efforts were being made to cut policy rates. The 6-year low of GDP growth stood at 4.5 percent in the July-September quarter. Because of this, people's concerns about the economy increased. However, positive news came on both the manufacturing and service PMI fronts in November.

India, rbi repo rate, Repo rate, Monetary policy, Interest rates, what is repo rate, interest rates India, share markets today, Indian banks, MPC meeting

5 consecutive repo rate reductions

Earlier, for 5 consecutive times, the central bank announced a cut in the repo rate. This year the repo rate has been reduced by 1.35% and the current rate is 5.15%. If the repo rate was further reduced, the debt associated with it would become cheaper, which would have made a difference in your EMI.

What happens repo rate

The rate at which RBI lends to commercial banks is called repo rate. This rate cut would have given banks cheaper loans. When this happens, there is pressure to provide cheaper loans to customers. Cheaper debt increases demand.