Will your home loans, auto loans get cheaper? Experts want this much Repo Rate cut from RBI Governor Shaktikanta Das
RBI is set to go for a rate cut to the tune of 25-50 bps as per industry experts? Why? Benign inflation risks, growth slowing down and pick up in monsoon in recent weeks are enough to warrant a repo rate cut.
RBI MPC Meeting: The Reserve Bank of India (RBI) Monetary Policy Committee (MPC) meting is on and today, it will announce whether it will cut repo rate thereby bringing down the home loan, auto loan and other loans burden on borrowers. India Inc is speculating a rate cut for the fourth successive time is on the cards. According to the various captains of commerce, benign inflation risks, pick up in monsoon in recent weeks and growth slowing down are enough to push RBI to go for a rate cut to the tune of 25-50 bps.
Amar Ambani, President & Research Head, Institutional Equities at YES Securities said, "With inflation risks benign, pick up in monsoon in recent weeks and growth slowing down, we expect MPC to cut Repo rate by 25 basis points in credit policy on 7th August, while maintaining accommodative policy stance. RBI will take cognizance of currency depreciation, global trade war escalation and the need to maintain rate differentials with global bond yields and not go with 50 basis points cut. In addition, we also expect to see a downward revision to RBI’s FY20 GDP growth forecast of 7 per cent, cues on future monetary policy trajectory, and views on liquidity management and financial stability."
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Shishir Baijal – Chairman & Managing Director at Knight Frank India said, "The Indian economy is going through testing times. What was initially being perceived as a sector-specific de-growth has now panned out to be an overall economic slowdown. The automobile and fast-moving consumer goods (FMCG) industries are in a slump, job markets are strained with increasing incidences of resizing and declining exports on the backdrop of a hostile global trade scenario are all indicators of the stalling economic growth in the country. A delayed monsoon this year may further worsen the situation as afflation is bound to impact food inflation and in turn, the overall inflation numbers."
On Repo Rate Baijal said, "In this light, the expectation of a 25–50 bps rate cut at the upcoming RBI monetary policy review meeting is well in line with the Central Bank’s recently adopted accommodative policy stance."
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