Even when the Reserve Bank cuts rates, your loan repayments might stay the same—here’s why and how you can lower them.
Without giving away much on whether more rate cuts are on the anvil, or if the RBI has plans to defend a falling Rupee, Sanjay Malhotra, in his first MPC address, handed out what most asked for - a 25 basis points cut in repo rate.
While a 25 bps rate cut seems to be a foregone conclusion, it being the first monetary policy chaired by Sanjay Malhotra, RBI governor, banker, equity, debt and currency markets will want to take cues on the policy direction.
The rupee weakened to 87.4875 against the U.S. dollar before closing at 87.4650, down 0.4% on the day.
On February 3, a Moneycontrol poll of bankers and economists also showed that the central bank will cut rate by 25 bps in February monetary policy as sluggish growth, government advance estimates, and a series of liquidity infusion measures have made the case for a rate cut.
As the US Federal Reserve implements a significant 50 bps rate cut, all eyes are on the RBI, with analysts split on whether the RBI will follow suit in October or delay until December amid ongoing food inflation concerns.
Speaking in an exclusive interview to Moneycontrol, Shah also noted that RBI's decision will also be measured against US Federal Reserve's rate decisions. The market guru cautioned, "If the US Fed stance is not that of an accelerated hike, then we should be fine."
Economists, including those at Barclays Bank Plc and Nomura Holdings Inc., see the central bank staying on a long pause as high interest rates weigh on demand in the economy.
Here are key takeaways from RBI’s press conference
this is the third time in succession that the Reserve Bank has cut the repo rate in 2019.
Japsal Bindra, Executive Chairman of Centrum Group, told CNBC-TV18 that a good monsoon and passage of GST Bill will be key.
Society of Indian Automobile Manufacturers (SIAM) had in March revised the growth forecast of passenger vehicles for the new fiscal to 11 per cent from 12 per cent after the imposition of infrastructure cess ranging between 1-4 per cent in the Budget.
Bank of America Merrill Lynch upgraded State Bank of India , Bank of Baroda , and Oriental Bank of Commerce Ltd to 'buy'.
Tarun Kataria, CEO of Religare Capital Markets expects the United States to reach a decision on the fiscal cliff issue in the next 24 hours.