RBI Monetary Policy Live: New Repo rate 5.4%
Real GDP growth for 2019-20 has been revised downwards to 6.9 percent from 7 percent in the June policy.
HIGHLIGHTS
- This is the fourth straight rate cut from the RBI and it results in an overall decline of 110 basis points or 1.1 percentage point in the key landing rate
- Reverse Repo Rate stood at 5.15%.
Following the 35 bps repo rate cut by MPC, the State Bank of India has reduced its MCLR by 15 bps across all tenors. With today’s MCLR cut, home loans have become cheaper by 35 bps since April 10, 2019.
When the RBI cuts rates, banks are expected to pass on the benefit to consumers and reduce interest rates on home, auto, personal loan or other loans which may result in lower EMIs (equated monthly instalments).
