Mumbai sources reported that the Reserve Bank of India Thursday cut benchmark lending rate by 0.25% to 6.25% on expectation of inflation staying within its target range, a move that may make home and other loans cheaper. Meanwhile the RBI, under its new Governor Shakthikanta Das changed the monetary policy stance to 'neutral' from the earlier 'calibrated tightening', signaling further softening of rates if inflation remain benign.
Furthermore with Deputy Governor Viral Acharya and another member Chetan Ghate voting for a status quo, Das and three others outvoted them for reduction in repo rate to 6.25% from the existing 6.50%. Reportedly reverse repo was reduced to 6% from 6.25%. Apparently repo rate is the rate at which commercial banks borrow money from the RBI; while reverse repo rate is the rate at which RBI collects money from banks.
Moreover the RBI cut its estimates on headline inflation which cooled off to an 18 month low of 2.2% in December for the next year, and expects the number to come at 2.8% in March quarter, 3.2-3.4% in first half of next fiscal and 3.9% in third quarter of FY20. Hence the RBI proposed relaxations on foreign borrowings by companies undergoing insolvency resolutions to pay off the local lenders, with their ratings rather than a blanket 100 per cent earlier and also harmonize categories of NBFCs.
Jagan's New Rule Detrimental to Investments in Andhra Pradesh? The Ruling Party in Andhra Pradesh has introduced a bill on the employment of local candidates in industries and factories mandate the state government to ensure 75 percent of employment opportunities to locals. It also puts the government under obligation to provide training to eligible local candidates.
- AP Opposition Leader & FM had heated argument about WB funding
- Congress Becomes Headless in Andhra Pradesh
- Will 86 Indian Sailors Held Captive in Indonesia be released?
- Three TDP MLAs Suspended from AP Assembly
- YS Jagan's Bumper Offer to Junior NTR?
- Farewell given to ESL Narasimhan by AP CM Jagan
- AP CM Jagan greeted ISRO team for launching Chandrayaan 2 successfully
- UIDAI to appoint adjudicating Officer to deal in contravention cases
- Picture of Priyanka Chopra smoking gone viral
- Chandrayaan 2 successfully launched by ISRO
- Did Kerala successfully fought against Nipah Virus?
- Sri Reddy is tech savvy & knows just how to use social media
- Telangana CM KCR reached his native village
- Why no Top Official greeted Pakistani OM Imran Khan at Dulles Airport?
- Visakhapatnam facing crunch of Domestic flights