This is the rate at which the central bank lends money to commercial banks, and it has been brought down by 25 basis point to 6.25 per cent.
The realty sector, auto sector and the banking sector in the city is upbeat about the bi-monthly monetary policy announced by the Reserve Bank of India (RBI) on Thursday which has lowered the repo rate.
This is the rate at which the central bank lends money to commercial banks, and it has been brought down by 25 basis point to 6.25 per cent.
Financial experts expressed hope that after this decision of RBI, the banks may also lower the interest rates, which will help reduce the EMI of the various loans taken by the people.
The effect will be seen on the people who have purchsed homes and automobiles on loans and could end up paying EMIs of lesser amount than what they are paying right now.
How many of the final consumers are benefited from this rate cut will be known when the commercial banks reduce their interest rates and extend the benefit to their customers.
Both the big sectors of the market, retail and automobile industry are waiting for the banks to follow in the RBI’s footsteps for a rate cut. They are hoping that more customers will approach them as the EMI rates will be reduced.
“It will bring a positive impact on the end user who will be attracted to buy property on loan from bank,” said a realty developer speaking to DNA.
There are a lot of salaried professionals who want to buy homes on loan from the banks. They pay EMI for a certain number of years. If the interest rate is high they do not find the option of buying home feasible and instead live on rent, sources said. This is specially true of Jaipur where the real estate sector is in a slump.
“FICCI hopes that the indication given by RBI today will soon be translated into lower lending rates by banks for both retail and corporate loans,” said Sandeep Somany, President of FICCI.
Financial experts felt that it will increase the consumption in many sectors in the economy and will ultimately help the economy even though they wanted a better rate cut.
Light At The End
- Both the big sectors of the market, retail and automobile industry are waiting for the banks to follow in the RBI’s footsteps for a rate cut.
- They are hoping that more customers will approach them as the EMI rates will be reduced and people will purchase properties.
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