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RBI Slashes Lending Rate by 0.25 per cent: Here’s Who Said What
The Monetary Policy Committee (MPC) has cut policy repo rate by 25 basis points to 6 per cent and the reverse repo by similar proportion to 5.75 per cent.
Mumbai, August 2: The Reserve Bank of India on Wednesday slashed benchmark lending rate by 0.25 per cent to 6 per cent citing reduction in upside risk to inflation, a move that will lower EMIs for home, auto and personal loans. This is the first rate cut since October 2016 and the interest rate is now at six-year low.
In line with record low retail inflation, the RBI Governor headed Monetary Policy Committee (MPC) cut policy repo rate by 25 basis points to 6 per cent and the reverse repo by similar proportion to 5.75 per cent.
Here is who said what:
Sanjay Shenoy, Joint Managing Director, Legacy Global Projects: Reduced cost of credit is excellent news for the real estate industry. Eased inflation and GST has brought about the very impact we were looking forward to. The real estate sector has been working hard to bring about increased transparency and ease of doing business with months of toil to implement RERA. The announcement is the very catalyst required to attract investors and spark about a surge in demand, ahead of the auspicious season of festivities to start post August.
Shishir Baijal, Chairman and Managing Director, Knight Frank India: The policy rate cut of 25 bps by the Reserve Bank of India’s monetary policy committee is on the expected lines. While it is a welcome move we were looking forward to a much more aggressive rate cut. Considering the battery of new reforms in force, a good monsoon in progress, benign inflation numbers, favourable global environment and the overall uptick in industry sentiments a healthier lending rate could have provided the much needed thrust to fuel India’s growth story. But we are happy to see that the central bank has adopted a monetary policy that propels growth. A growing economy would signal healthy consumption across all genres of the Indian real estate.
Ananth Narayan of Standard Chartered told Moneycontrol: It is unlikely to see too many rate cuts going forward. It was a very neutral policy.
HDFC Bank’s Abheek Barua: There is no indication from the RBI about any kind of easing of inflation in the second half. We will remain cautious going into the second half of the year.
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