Rate Cuts may boost the economy: Reports
Rate cuts and impact on economy
Rate Cuts may boost the economy: Reports:- In an effort to boost the economy, India’s central bank has cut a key interest rate to its lowest level in nearly six years. Notably this was the first interest rate review under the new governor Urjit Patel. The bank cut its benchmark repo rate to 6.25 percent from 6.50 percent.
Though Mr. Patel was the sole incharge, but cut in the rate has been decided by the newly formed monetary policy committee.
However, the apex court did not reveal that how members of the six- strong committee voted.
Repo rate may help to boost the economy
To announce this, Mr. Urjit Patel took a press conference but during the conference he took only five questions. People are taking it as a signal that he wants to keep his profile low. Notably, on the other hand, Raghuram Rajan was known for his friendly interactions.
The newly formed committee has been given the task of maintaining price stability while also given the responsibility of the objective of growth. Patel’s first policy was also preceded by similar high expectations. His decision has irked the critics and according to reports, some of them even called him Modi Government’s chamcha. He has assured that this repo rate cut will definitely help the economy to grow.
Notably, Mr. Patel has described central bankers as Unsleeping owl and has assured that they will not only in growth but will also sustain the battle against inflation.
Though currently his decision has fired up engine but has guaranteed that in future it will take India to new heights. We also hope so. Notably, cut in repo rates will make home loans cheaper. So it would become easier for the people to buy their own home.