The Reserve Bank is likely to go in for a minimum 25 basis points cut in key lending rate in the forthcoming monetary policy review as the need to revive the coronavirus-hit economy is pressing notwithstanding marginal uptick in inflation, feel experts.
The Reserve Bank of India (RBI) on Monday said it would support crisis-hit Yes Bank with liquidity if the need arises. The central bank did not announce any rate cuts which are seen as a quick-fix whenever a country is in the middle of market uncertainty or hit by an economic slowdown.
The festival season is all set to bring good news for those planning to buy cars or bikes. Details inside.
The decision to reduce the repo rate was taken by the RBI's Monetary Policy Committee (MPC) at its second monetary policy review of the ongoing fiscal.
Despite the RBI cutting policy rate by 50bp so far in 2019, banks have not adjusted their lending/deposit rate accordingly. On the contrary, a number of banks have raised their deposit rates to mobilise funds.
In a bid to boost the sluggish economy before elections, the RBI Thursday cut the interest rate by 25 basis points for the second time in as many months, a move that may translate into lower EMIs for home and other loans.
In a new year gift to the common man, the government has notified reduction in GST rates on 23 goods and services, including movie tickets, TV and monitor screen.
With all but 50 items removed from the highest GST rate slab, collections in October fell to Rs 83,346 crore from over Rs 92,000 crore in September, official data showed on Monday.
The GST Council recently reduced the tax rate on 178 items from 28 percent to 18 percent and also brought all AC and non-AC restaurants in the five percent GST bracket without the Input Tax Credit (ITC).
Topics ranging from 'potential areas of conflict and litigation under GST' to 'comparative analysis of concepts: GST vis-a-vis Central Excise, Service Tax and VAT', were discussed.
The GST Council, chaired by Union Finance Minister Arun Jaitley and comprising his state counterparts, had last week lowered tax rates on over 200 items.
The decisions in the GST Council are "all consensus decisions," he said. "This is really juvenile politics to link it with either elections or political demands".
The fourth bi-monthly monetary policy statement for 2017-18, to be released today, is being keenly awaited by all stakeholders.
The Reserve Bank's decision to lower the benchmark rate by 25 bps to 6 per cent yesterday was already priced in, which is why there is nothing to cheer, dealers said
Industry believes the RBI's move to cut interest rates by 0.25 per cent was long due, but there was more that could have been done
The government had been pitching for a rate cut to boost economic growth amid retail inflation falling to a historic low of 1.54 per cent in June
The cut in the key lending rate comes on the back of the sharp dip in retail inflation over the past few months. The revised repo rate at 6 per cent is the lowest in six-and-a-half years since November 2010
The 30-share Sensex spurted by 111.31 points, or 0.34 per cent, to hit a new peak of 32,686.48, breaking its previous intra-day record of 32,672.66 hit on July 27
It is the policy week and all hopes are set for an interest-rate cut when the RBI's monetary policy committee meets on August 2
Reserve Bank f India’s rate cut of 25 basis points has failed to enthuse equity markets, with the BSE Sensex plunging 516 points to end at 24,833.16 points. Nifty too cracked 155.60 points to and closed at 7,603 points.
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