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RBI Monetary Policy 7 April 2015: Review

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07-04-2015, Tuesday, RBI Governor Raghuram Rajan kept the repo rate unchanged at 7.5% in the central bank’s monetary policy review.

 

The Monetary policy given by RBI governor on 07.04.2015

Monetary and Liquidity Measures

  •  The policy repo rate under the liquidity adjustment facility (LAF) unchanged at 7.5 per cent;

  •  The cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liability (NDTL); and

Key takeaways from RBI policy review

✓ Waiting to see Transmission of rate cuts
✓ policy focuses on structural, rate transmission
✓ Don’t see an environment tepid credit growth.
✓ Bank’s marginal cost of has fallen
✓ Policy stance remains accommodative post jan
✓ Future rate cuts will depend on room RBI has

Effects on Home loans
With the rates unchanged the rates for new customers will definitely not increase. If Banks have the liquidity expect some Banks to announce rate cuts or special offers for new customers.
For customers who already have a Home loan, the change will be neither upward or downward and the EMI remains same.
Effects On Personal Loan
The rates are stabilized from 13.5% to 19% under Personal loans. Most of the banks like to give loans at an average of 16%  and give some special offers to top 500 company employees by reducing Rate to 13.5%. With no change in the liquidity by the change in the RBI policy the rates will remain the same .

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