Reserve Bank of India ( RBI ) can cut the policy rate by 25 basis points i.e. 0.25 percentage points to support the staggering economic growth. 21 participants in the survey conducted by Economic Times have given this estimate. If this happens, the EMI of your loan may decrease. According to the data released last Friday, GDP growth in the second quarter of the financial year was 4.5%, which is the lowest in almost six years.
ICICI Bank's Global Markets Head B Prasanna said, "According to me, the entire focus of RBI may be on the decline in aggregate demand. To get the benefit of the rate cut to the bond market, it is necessary to give guidance to reduce the rate even further. Repo is the rate at which banks take loans from RBI for a near term and currently it is 5.15%.
HDFC Bank Chief Economist Abhik Barua said, 'The focus will not only be on cutting the rate, but on reaching the end. There may be an exercise to link more floating loan rates to the benchmark rate. Money market rates are also decreasing according to the policy rate cuts.
Since January this year, the RBI repo rate has been reduced by 135 basis points but since Shaktikanta Das took charge as RBI Governor, the marginal cost of fund based lending rate (MCLR) of banks has decreased marginally by 40 basis points. is. 100 basis point is equal to 1 percentage point. Indranil Sen Gupta, India Economist, Bank of America said, "There has been a sharp jump in core wholesale inflation adjusted real lending rate. In view of this, the Reserve Bank can further reduce the repo rate.