Bankers promised to act swiftly to ensure faster transmission of rate cut, which will reduce EMIs of borrowers.
The newly created Monetary Policy Committee has also signalled a lower interest rate regime in favour of growth on the back of falling food inflation.
Mumbai: In a pre-Diwali gift to borrowers, the RBI governor led monetary panel on Tuesday slashed repo rate — the rate at which banks borrow from RBI — by 0.25 per cent to a six-year low at 6.25 per cent.
The newly created Monetary Policy Committee has also signalled a lower interest rate regime in favour of growth on the back of falling food inflation.
Dr Patel said he expected lending rates to go down by the next two quarters, as small savings rates have now been adjusted to market rates.
Bankers promised to act swiftly to ensure faster transmission of rate cut, which will reduce EMIs of borrowers. This was Mr Patel’s first policy announcement after the formation of the 6-member MPC.
( Source : Deccan Chronicle. )
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