RBI cuts rate third time in 2019 to revive economy. Expect to pay lower EMIs on your home loans and car loans, now that the Reserve Bank of India cut the repo rate — the rate at which it lends to banks — by 25 basis points to 5.75 per cent, which is the lowest in nine years.
Thursday’s move is aimed to boost a sagging economy. And, the central bank has signalled more such cuts.
Highlights of Repo Rate Cut
Repo Rate cut by 25 basis points to 5.75%, the lowest in nine years / GDP growth projection for FY20 cut to 7% from 7.2%.
- Loans: Interest Rates on home, car loans and loans to companies to fall.
- Economy: Industry welcomes step to boost demand, even as RBI signals more cuts to boost growth.
- Realty: Housing demand to boost if banks pass on benefits.
- Rupee: INR recoups most early losses Thursday to close marginally lower @ 69.28 to the USD.
- Bonds: Government borrowing to get cheaper as yields on Govt. bonds fall by 10 basis points.