Loan Emis: After RBI Mpc's decision to cut repo rate, government officials are actively keeping an eye on banks and lenders to ensure rate reductions announced by the central bank are properly tried to get A high-ranking government official indicated they will engage with banks if the rate cut transmission is not evident in the coming weeks.
“There is no stipulated Timeline.
The RBI Announced A 0.25 PERCENTAGE POINT REPO RATE Reduction Last Week, The First Such Decrease in Five Years, Potanally Leading to Lower Interest Rates on Housing Loans And other credit facilites.
Under new rbi governor Sanjay malhotraThe mpc reduced the repo rate to 6.25%.
RBI Repo Rate Cut
“The mpc remains unambiguously focused on a deurable alignment of inflation with the target whose supporting growth,” Malhotra said.
In 2019, Following A 25-Bas-Point Reduction by the Central Bank, Most Banks only passed on about 5 Basis points, Necessitating a meeting between the RBI and Banking Institutions.
Also read | Loan EMI Calculator after RBI Mpc Meet: Bonanza for Middle Class! How much will you save with lower emis + new income tax slabs? Explained
The Previous RBI Governor, Shaktikanta Das, Had then Emphahsized The Significance of Rate Transmission Post Rate Cuts and Indicated Plans to Discussary Measures with Measies Necessary Measus with Banks.
Previous, the Central Bank Highlighted Insufficient Monetary Transmission as a Crucial Policy Isue, Noting Its IMPACT on Limiting Policy Effective Effecting Economic Aconymic activation and information.
An Emkay Global Financial Services Analysis Indicates that System Liquidity Deficit Has Reduced to ₹ 70,000 Crore Presently, IT “Will Turn Ugly” Reaching Beyond ₹ 2.5 Lakh Croe MARCH Al Measures.
“This implies that more measures are on the anvil if the rbi finds this level of deficit uncomfortable for policy transmission, especially as the depth of the cut Cycle is arguable,” The analysis sugges the repo rate reduction will affect margins (5-12 BPS) for banks with higher floating or repo-Linked Loan Portfolios.
(Tagstotranslate) Sanjay Malhotra (T) RBI REPO RATE CUT (T) Monetary Policy (T) Loan Emis (T) Loan EMI Calculator (T) House Loans
Leave a Reply