RBI announces the reduction in interest rate by 25 bps for nearly 5 years. It gives a big relief to home and auto loan borrowers. This is new first Monetary Policy by Governor Sanjay Malhotra, and he took charge at central bank before. The six member Monetary Policy Committee (MPC) meeting has been held on Wednesday and announce that RBI Policy Cut Repo Rate by 25 bps.
On this, Governor Malhotra said that inflation target has serve the economy of India, and average inflation are remained lower after the introduction of monetary policy framework. We think this Economic interest warrants the efficiency of the economy. He said, “We will continue to strengthen, rationalise and refine the current framework.”
RBI Policy Cut Repo Rate by 25 bps to ease borrowers
CEO of Nimbus Group, Sahil Agarwal, said that the repo cut will boost consumption and purchasing power and improve liquidity. It drives economic growth. Lower borrowing costs will push the real estate sector and reduce interest rates. It makes the home loan accessible to borrowers. This move will encourage a higher demand for housing and give advantages to end users and investors.
A repo rate cut in the next MPC provides further impetus
President of CREDAI National, Boman Irani said that RBI Policy Cut Repo Rate by 25 bps to 6.25%. This announcement aims to boost the spurring economic growth and spending.
Even the current cut has limited impact, but it further rate cut is expected to announce in the next MPC meeting. It gives further impetus to overall demand, and increases house sales, especially in affordable and mid-income sections. These measures show the robust framework for sustainable growth, boosts confidence among developers, homebuyers, and investors,” he said.
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