ANOTHER RATE CUT BY RBI

BE/RBINOTE/42/2019 

Expected Effects of Rate Cut:

  • Loan rates would come down and already banks have started cutting lending rates.
  • However, lending rate cuts are smaller than the reduction in repo rate
  • The Reserve Bank of India (RBI) has given priority sector tag to bank loans extended to registered non-bank lenders for financing agriculture, small businesses and home buyers within specified limits.
  • The cut in repo rate is likely to result in lower EMIs for home and auto buyers.
  • RBI’s next monetary policy statement will come out on October 4.
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Author: Admin Bankedge

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