Home, auto and corporate loans may get cheaper as the new RBI Governor Urjit Patel-led panel yesterday marked its debut policy review with a surprise 0.25% rate cut – lowering borrowing cost to a six-year low, which the industry lauded as a pre Diwali gift
Urjit Patel. Pic/PTI
New Delhi: Home, auto and corporate loans may get cheaper as the new RBI Governor Urjit Patel-led panel yesterday marked its debut policy review with a surprise 0.25% rate cut – lowering borrowing cost to a six-year low, which the industry lauded as a pre Diwali gift.
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In independent India’s first collective interest rate setting decision, the 6-member Monetary Policy Committee, which has three members nominated by the government and the rest from the Reserve Bank, lowered repo rate to 6.25% from 6.50%. First in six months, yesterday’s cut came amidst big clamour for easing rates especially after the departure of former Governor Raghuram Rajan, who was often accused by some sections of stifling growth by keeping rates too high.
Within minutes of the RBI policy announcement, the government welcomed the rate cut saying it will boost liquidity and help achieve 8% GDP growth.
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