RBI Guv Raghuram Rajan effects repo rate cut: Highlights

By: | Updated: January 15, 2015 6:37 PM

Highlights of the RBI Governor Raghuram Rajan's decision on monetary policy and subsequent development...

Following are the highlights of the RBI Governor Raghuram Rajan’s decision on monetary policy and subsequent development:

* Key policy rate (repo) cut by 0.25 per cent to 7.75 pc.
* Reverse repo to cut by 0.25 pc; CRR still at 4 pc.
* First cut in interest rate since May 2013.
* EMIs for auto and home loan to come down.
* United Bank of India announces cut in lending rate.
* Other banks likely to follow.
* FM Arun Jaitley terms it positive for economy.
* FM says move will leave more money in hands of people.
* India Inc hails interest rate cut.
* BSE Sensex jumps over 800 pts in intra-day trade.
* Since July 2014 inflationary pressures easing, says RBI.
* Crude prices expected to remain low over the year.
* Govt reiterated commitment to fiscal targets, says RBI.
* Inflation is likely to be below 6 pc by January 2016.
* RBI to announce monetary policy review on February 3.

Read StanChart Report: RBI likely to ease further
Read SBI Report: Beginning of a rate easing cycle

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