By Accommodation Times News Services
Reserve Bank of India’s monetary policy review will announced within few days, it is expected that RBI will announce a rate cut, Even the Finance Minister, Arun Jaitley, said it’s time for the Reserve Bank of India (RBI) to cut rate in view of moderation in inflation and subdued industrial growth. On completion of one year of his government, he had said at a press conference, “My views are well-known. It is the time.”
It was clear he mean that he too wants Central bank to cut down the rates and work on stabilising the economy. RBI is scheduled to announce its monetary policy on 2 June.
If the RBI implements further rate cut in the next monetary policy announcement more banks and HFCs can follow the motion and reduce their home loan interest rates and make the home buyers happy.
After the recent two rate cuts with the Governor’s stern warning, most banks brought their home loan lending rates to around 10%, but the home buyers want some more reasons to be happy.
A third cut in less than six months would surely make banks and HFIs more comfortable and they would happily start passing on the benefit. A sub 10% rate of interest would surely bring smiles on the faces of the existing as well as aspiring borrowers.
In the month of March consumer price index-based inflation (CPI) stood at 5.17 percent from 5.37 percent in February 2015, the CPI eased to a three month low. The experts have also predicted that this can lead to a further announcement for rate from the central bank.