Showing posts with the label repo rate cut

REPO rate reduced to 4 Percent cut by 40 basis points - RBI

REPO rate reduced to 4 Percent cut by 40 basis points - RBI The Monetary Policy Committee held for the three days from 20th May 2020 to 22nd May 2020. In the end of 3rd day, all the committee members had cast their votes in favor of interest rate cut. In a statement issued by the RBI, it was said that the REPO rate for banks would be reduced to 4 Percent from the earlier 4.40 Percent, cut by 40 basis points. The announced REPO rate cut on last morning was considered to be as an 'Emergency Move' by the Central Bank. Similarly, the Reverse REPO rate has been reduced from 3.75 Percent to 3.35 Percent. The Bank rate was also said to be 4.25 Percent from 4.65 Percent. According to the RBI data, Since March 2020 the economy of the country has been badly affected and most of the businesses have been harmed by the Covid-19 Lock down. It has been said that it is currently unable to gather proper data on Inflation rates and that there will be unexpected changes in the Inflation rates in

Will the Repo rate go below 5 Percent ?

Will the Repo rate go below 5 Percent ? The Retail Inflation, so called Consumer Price Index (CPI) Inflation stood at 3.21 Percent in the month of August 2019. This is up from 3.15 Percent in July and 3.18 percent in the same August last year. However it did not reach the expected level of 3.30 Percent by the Analysts. At the same time, the retail inflation is also below RBI's medium term Target of 4 Percent. It is noteworthy over the past one year, India's Retail Inflation has not exceeded the said 4 Percent. The Inflation rose in August 2019 is due to Food Prices like Meat and Fish, Vegetables and Pulses. Prices of Oil, Fat and Milk products have also increased marginally. Fruits and Sugar products are declined in the last month. Rural Inflation was 2.18 Percent and Urban Inflation was at 4.49 Percent Provisionally in the month of August 2019. India's CPI Inflation has averaged about 6.2 Percent Since the year of 2012. It was seen as 12.17 Percent which is the highest in

Repo Rate Cut to 5.40 Percent - RBI Policy

Repo Rate Cut to 5.40 Percent - RBI Policy The Repo Rate for the banks has been reduced to 5.40 percent, cut by 35 basis points. As a result of the Monetary Policy Committee, the new Repo rate fell to 5.40 percent from the earlier 5.75 percent. The Reverse Repo rate has been changed to 5.15 percent, while the Bank rate and MCLR ratio has also changed to 5.65 percent. The CRR (Cash Reserve ratio) stands at 4 % and SLR at 18.75 percent. According to the RBI Policy, this rate cut has been announced due to Economic Slowdown and Inflation rate under the same circumstances. Trade war between US-China, Weakening of Industrial investment in the United States, Lack of growth in the Manufacturing worldwide and even the brexit of Britain have been attributed to Global factors. Japan's industrial figures shown that the economy is likely to slow in the second quarter of FY20. The RBI Policy has also mentioned the economic numbers are not favorable in the Emerging Countries. Manufacturing and Sa