India Inc welcomes RBI move; says rate cut will spur growth

RBI cuts repo rate from 5.40% to 5.15%; GDP outlook for 2019-20 revised to 6.1%

The reverse repo rate was also adjusted to 4.90%.

Repo rate is the rate at which the RBI lends money to commercial banks.

"Several measures announced by the government over the last two months are expected to revive sentiment and spur domestic demand, especially private consumption".

Friday's cut takes the benchmark rate to the lowest in nearly a decade and follows a number of fiscal steps taken by the government recently to spur growth, including a surprise US$20 billion reduction in corporate taxes.

Looking at the cumulative cuts in repo rates in the past, the highest cumulative rate cut in one calendar year, was in 2002, when rates were lowered by 300 bps.

The RBI has reduced report rate for the fifth time this year.

Rate cut may bring cheer among borrowers:When the RBI cuts rates, banks are expected to pass on the benefit to consumers and reduce interest rates on home, auto, personal or other loans which may result in lower EMIs (equated monthly instalments).

Ukraine's top prosecutor unaware of evidence against Hunter Biden
Kurt Volker , a central figure in the House's impeachment inquiry, appeared for almost 10 hours behind closed doors. Sasse's remarks came Thursday after Trump told reporters: " China should start an investigation into the Bidens".

The RBI also cut its real gross domestic product (GDP) growth forecast for 2019/20 to 6.1 percent from a prior projection of 6.9 percent, citing forward-looking surveys that indicate persistently weak demand conditions will persist.

While the decision to cut the repo rate was unanimous, members of the six-member Monetary Policy Committee (MPC), differed over the quantum.

The MPC noted that "accommodative stance will be maintained as long as it is necessary to revive growth while ensuring that inflation remains within the target", leaving room for more rate cuts in future.

With this downward revision, the monetary policy committee (MPC) has cut the growth forecast by 1.3 percentage points since February.

However, not all economists were as aggressive with their rate cut bets, saying the central bank will likely reserve some firepower and wait to see how inflation pans out.

If the RBI delivers a 25 bps cut as expected, traders will focus on the wording and tone of the monetary policy statement for clues on further easing.

The government has further taken note of higher projection of headline inflation by MPC for 2019-20, which is within the band of 3-4 per cent and well within the target range, it said.

Related News:

  • Net Neutrality Battle Moves to States and to 2020

    Net Neutrality Battle Moves to States and to 2020

    An attempt to legislate its reinstatement failed a year ago , although tech trade groups are still trying in court. He added: "A free and open Internet is what we have today and what we'll continue to have moving forward".
    Chevrolet reveals new Corvette C8.R GTE challenger

    Chevrolet reveals new Corvette C8.R GTE challenger

    Chevy brags that the 2020 Stingray convertible offers the same storage as the coupe, even with the top down. The company said potential customers can use a price tool at the Chevrolet website to configure their cars.
    Australia cuts interest rates to new record low

    Australia cuts interest rates to new record low

    NAB will cut its by 0.15 per cent. "We have seen the number of regional financial counsellors go from over 500 to over 700". In the immediate aftermath of the announcement, the Australian dollar declined by 1.3% against the U.S. dollar to 0.66.
  • Hong Kong government mulls face mask ban at protests

    Hong Kong government mulls face mask ban at protests

    On Sunday in Hong Kong, an anti-totalitarianism march, despite a police ban, drew several thousands demonstrators. The protests have also forced the cancellation of major public events.
    Airbnb has organized a rock concert... for great white sharks

    Airbnb has organized a rock concert... for great white sharks

    Using underwater speakers, Kiss will begin playing, and the sound will be audible to the submerged fans and the sharks. Pepper Super Bowl commercial and advertising campaign in support of their Hottest Show On Earth tour.
    The EU is 'unconvinced' by UK's Brexit proposals

    The EU is 'unconvinced' by UK's Brexit proposals

    Simon Coveney, the Tánaiste, said Johnson's proposal for customs checks on the island presented a "real problem". He said there was a need for "honesty" in terms of what was possible in a final deal.
  • Google Must Face 'Safari Hack' Privacy Lawsuit In UK 10/03/2019

    Google Must Face 'Safari Hack' Privacy Lawsuit In UK 10/03/2019

    The Court of Appeal will allow consumers to file group legal action to secure damages from Google. They have also said that they are to ask for permission to appeal to the Supreme Court.
    Kate Middleton’s statement earrings cost just $8

    Kate Middleton’s statement earrings cost just $8

    Kate went on to reveal that curry is their comfort food at home and she often makes some. "Me and heat not so good", he said. While their kids are served no spice food but Princess Charlotte apparently takes after her mom who loves spice.
    Kylie Jenner and Travis Scott take time apart

    Kylie Jenner and Travis Scott take time apart

    Picture: Getty Travis and Kylie have taken a break from their relationship following two years of dating. Kylie Jenner and Travis Scott "fell out of love" when they had to settle down to the realities of life.
  • Conservative Leader Andrew Scheer holds dual Canadian-U.S. citizenship

    Conservative Leader Andrew Scheer holds dual Canadian-U.S. citizenship

    For Scheer and Singh this will be the first debate with Trudeau and it's in their second language. TVA did not invite either Green leader Elizabeth May or People's Party leader Maxime Bernier.
    Call of Duty Mobile officially released for Android and iOS

    Call of Duty Mobile officially released for Android and iOS

    Asked about the controller support feature, Activision Support confirmed that it was removed when the recent update was released. Call of Duty Mobile is officially available worldwide now, which means there will be a whole lot more players to contend with.
    Possible staffer kills 4 in knife attack at Paris police HQ: Cops

    Possible staffer kills 4 in knife attack at Paris police HQ: Cops

    A third officer, who Mr Siamandi described as the person who shot and killed the assailant, came out on his knees, also in tears. Still, police are not treating the attack as a terrorist act, saying the employee appears to have been feuding with supervisors.


Most liked

Taylor Swift gets upset over banana in post-surgery footage
And that's when her mom swoops in and tries to talk some sense into her , saying she'll eat the other banana . Fallon insists Taylor not be mad at him while struggling to hold his laughter.

MGM Settles With Vegas Massacre Victims
As ABC 7 reports , the announcement came from Las Vegas law firm Eglet Adams, which represents 2,500 victims and their families. Eglet said his firm alone represents almost 2,500 people who said they were affected by the mass shooting.

Ex-Dallas officer gets 10 years for killing unarmed neighbour
Prosecutors had asked jurors to sentence Guyger to at least 28 years, which is how old Jean would have been if he was still alive. Her son, Botham Jean , was shot to death inside his own apartment by former Dallas police officer Amber Guyger .

Ronaldo scores as Juventus brush aside Leverkusen
Leverkusen had a pretty solid game plan: keep the ball, try and coax Juventus out to play, then hit the hosts on the transitions. Welsh global Aaron Ramsey was introduced in place of Bernardeschi with Dybala replacing Higuain for the closing stages.

James Paxton to start Game 1 of ALDS for Yankees
While James Paxton , Luis Severino and Masahiro Tanaka are set as starting pitchers, Boone still has not finalized their order. They'll rely on that trio and an exceptionally deep bullpen, which Boone says he'll be "aggressive" in deploying.

Former De Niro employee sues 'to send a message,' attorney says
Robinson's suit denies those claims and alleges that De Niro had personally approved the transactions in question. Representatives for De Niro did not immediately respond to Fox News' request for comment.

Eriksen dismisses reports Spurs' teammate Vertonghen slept with his wife
Jan Vertonghen and Christian Eriksen during the UEFA Champions League Round 16 match against Borussia Dortmund. Both Eriksen and Vertonghen took to Twitter today, to slam the gossip which emerged over the weekend.

Tom Holland announces break from Instagram to film a new movie
No matter the case, it'll be a couple of years earlier than we uncover whether Spider-Man disappears from the MCU for moral. That deal expired with Far From Home , and the partnership between the two studios was reportedly "100% dead" in August.

Nationals Shock The Brewers, Head To The NLDS Off Untimely Error
I've read things on social media like, "Hader can get the hell out of Milwaukee " and "I hope the Brewers trade Hader". Trent Grisham appears to have a bright future ahead of him as a big league ballplayer. "It's going to sting".

Adam Schiff knew about the whistleblower's complaint before the whistleblower filed it
However that top spy lawyer then contacted officials in the White House and the Justice Department's Office of Legal Counsel. With 'Shifty Schiff, ' and [House Speaker Nancy] Pelosi and all of them - we'll see what happens.

IPhone SE 2 coming next year, but will the price be right?
This is not the first rumor that discusses the possibility that a possible "iPhone SE 2" will be the size of the iPhone 8. In September, the Japanese newspaper Nikkei published a report suggesting Apple was working on the rumoured device .

Trump Shares Pastor’s Warning of ‘Civil War-Like Fracture’ If Impeached
Although Trump wants to learn the identity of the whistleblower, policies have been devised to prevent that. But Trump said Wednesday that if anything needs review, it's the identity and motives of the whistleblower.

Google Chrome Can Now Warn If Passwords Have Been Compromised
Finally (and sadly), only 45 percent of the respondents would change their password to an online account following a data breach. The feature, which is not new for Google web and Android phones, will be introduced in Chrome browser before the year ends.

Surface Pro 7 Launches With Upgraded Internals, Promises Laptop-class Performance
The Surface Neo tablet has a similar appearance, but it is larger and users can not make phone calls from it. The Surface Neo looks like a tiny notebook when closed but then opens into a foldable, dual-screen tablet .

Here’s what we know about Google Pixel 4 and 4 XL specs
Pixel 4 would have a 5.7-inch Full HD+ display, whereas the Pixel 4 XL would have 6.3-inch Quad HD+ display. Both devices will ship with Android Q out of the box which was already available on previous Pixel phones .