Today, the Governor of the Reserve Bank of India, Mr. Raghuram Rajan has made an announcement regarding the credit policy. He has cut 0.25 interest rates, as previously expected. While, there is no change in the CRR. It remains same at 4 percent. Apart from this, the repo rate has also been cut by 0.25 per cent. Formerly the repo rate was 6.75 per cent, but now, it has been 6.50 percent. MSF has also been cut by 0.75 percent.
This is a good news for all the borrowers as the EMI can be reduced by decreasing the repo rate and banks may think to reduce the EMI. Whereby, the home loan and car loan will be cheaper.
Presenting the monetary policy, RBI Governor said that the next policy review is dependent on the monsoon. If rain will be good, then the next time the rate changes can be made.
The growth rate is likely to be 7.6 percent in 2016-17, according the central bank. The Indian Finance Minister, Mr. Arun Jaitley also said on Monday that interest rates are likely to slow the economy.
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