Quote on Market by Vipul Bhowar, Senior Director Listed investments, Waterfield Advisors
Below the Quote on Market by Vipul Bhowar, Senior Director Listed investments, Waterfield Advisors
"This marks the first rate reduction in nearly five years. The last time the Reserve Bank of India (RBI) lowered the repo rate was in May 2020, when it was decreased by 40 basis points to 4% to bolster the economy during the COVID-19 pandemic.
As a result of this rate cut, equated monthly instalments (EMIs) on home and vehicle loans are likely to decline, easing the repayment burden for individuals. Lower interest rates typically stimulate increased borrowing, spending, and investment, which in turn supports job creation and employment opportunities.
Furthermore, this rate adjustment may enable banks to reduce their lending rates, making credit more accessible. When combined with income tax relief for taxpayers earning ?12 lakh or less, it is anticipated to boost consumption-driven demand."
Above views are of the author and not of the website kindly read disclaimer
