FOLLOW US AROUND THE WEB
  • (578) Views
  • Bookmark and Share

RBI will cut rates to boost growth

Signaling a possible interest rate cut to boost economy at its annual credit policy on Tuesday, the Reserve Bank said it would shift the focus to arresting declining growth while keeping inflation under control. "Inflation expectations moderated in the fourth quarter of 2012-13 but remain high. With significant upside risks to inflation, monetary policy needs to keep them anchored, while shifting the balance of policy to arrest the deceleration in growth momentum," RBI said on the eve of annual monetary policy. RBI in its Macroeconomic and Monetary Development Report also cautioned that inflation is likely to remain "sticky" at the current level throughout the fiscal (2012-13). Finance Minister Pranab Mukherjee too described the rising food inflation as "disturbing". The RBI has already cut the cash reserve ratio, the share of deposits banks must maintain with the central bank, by 125 basis points in two moves since late January to 4.75 per cent, making more money available for lending.

Here is how loans are set to get cheaper if the RBI slashes interest rates by quarter basis point:

  • On a loan of Rs 20 lakh for 15 years one could save at least Rs 307.
  • For Rs 20 lakh loan for 20 years one could save Rs 332.
  • And for a Rs 30 lakh loan for 30 years one could save at least Rs 449.

The RBI said it would shift the focus to arresting declining growth while keeping inflation under control.

Post Your Comments
Recent News
Padmavti Movie Not Release in Rajasthan, MP and Punjab.
Prime Minister Narendra Modi Nepal Visit
Subsidized LPG Increase to 12 Cylinders
Nadella Apt to be Next Microsoft CEO
Super30 Founder Got Ramanujan Math Award
Pinterest Starts ‚ÄúExplore Interests‚ÄĚ Section
CBSE Board Exam Admit Cards Go Online
RBI to Extract Pre-2005 Currency Notes
Kawasaki Z800 Launched at Rs 8.05 Lakh
Google Eating Site’s Pageviews, Wiki Too