Good Morning Friends,
Repo rate reduced to 8% is going to help individual like me. Repo rate reduced to 8%, well I am the happiest person to know this. It’s going to have it’s effect on Indian economy as well as towards financial condition of stock market.
For me, reduction in repo rate going to help me in direct way. I am having a home loan and rate of interest is increasing till now. Now with Repo rate reduction, rate of interest on home loan is going to go down. Let’s see how my bank is going to reduce and how much benefit I am going to get with this action of our Prime Minister Manmohan Singh. I read this news at yahoo news.
On Monday, Prime Minister Manmohan Singh led from the front, stating there was no room for fear on the state of the Indian economy, while the government unsheathed all its weapons to keep the financial sector solvent, stock markets orderly and growth on track.
For the middle class, the big news is the home loan rate cuts—tentative at first, but bound to snowball. The government also held out the likelihood of a major expenditure boost to spur demand across sectors. Since RBI will announce its half-yearly credit policy on Friday, another tranche of rate cut is on the cards.
RBI announced a 100-basis point cut to 8% in the repo rate—the rate at which it lends to banks—soon after the stock markets opened. Since banks peg their lending rates to this benchmark, it is certain to lower rates across the board. This is the first reduction in the repo rate since 2004.
More in next post…….
