INSUBCONTINENT EXCLUSIVE:
RBI slashed the repo rate by 0.25 percentage point to 5.15 per cent.The Reserve Bank of India (RBI) on Friday slashed the repo rate by 0.25
percentage point to 5.15 per cent - a level last seen in 2010
Industrialists said that the move would be helpful but only if the benefits are passed on to the businesses
This year alone the RBI has cut repo rates by 1.1 percentage point while banks have passed on an average of only 0.29 per cent to customers,
they added."It will be somewhat helpful
But unfortunately all these repo rates are not being passed on by all the banks as they are facing difficulty
Government's saving rates are high and provident fund rates are also high," said Adi Godrej, Chairman, Godrej Group while speaking to
TheIndianSubcontinent.Mahendra Singhi, CEO, Dalmia Bharat Group told TheIndianSubcontinent, "The government should ensure that the interest
cuts get passed on to the businesses and individuals
Secondly, more spending should be done by government in infrastructure so that the money comes in the market and rural economy gets a boost
month was a welcome initiative and would impact industries in a positive way.Anuj Puri, Chairman, ANAROCK Property Consultants said that the
repo rate cut can probably go some way in improving consumer sentiments ahead of the festive season, which is a crucial quarter for the real
estate sales."However, much depends on how efficiently banks transmit the benefits to their homebuying borrowers
An efficient transmission will lower the cost of capital not only for consumers but also for developers, making room for price revisions and
Some banks have agreed to link their lending rates to the repo rates, but all major lending institutions need to follow suit," he said.Get
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