Welcome, but too little, says India Inc on RBI rate cut

All the RBI inflation forecasts since April 2017 have been consistently higher than actuals

The Reserve Bank of India (RBI) on Wednesday cut the repo rate by 25 basic points (bps), bringing it down from 6.2% to 6%, effectively immediately.

Introduced from April 2016 as an advance over the base rate system, MCLR is a new methodology for setting the lending rate by commercial banks to facilitate transmission to customers the benefits of rate cuts by the RBI.

Meanwhile, the RBI has constituted an internal group to study the marginal cost of lending rate (MCLR) system for commercial banks created to improve monetary policy transmission, RBI Deputy Governor Viral Acharya said on Wednesday.

Conte says Morata has to improve his fitness quickly
Conte had earlier claimed he wouldn't hesitate to sign the England global striker if chanced as he is one of the best in world.

Under MCLR based lending, do not, therefore, expect the EMI's to fall every time RBI cuts repo rate.

Interestingly, Dena bank has increased its overnight, 1,3,6 month's MCLR for August while keeping the 12-month rate same as in July 2017.For August, Dena Bank has the 1-Year MCLR at 8.55 per cent, while the Oriental Bank of Commerce Bank had revised 1-year MCLR to 8.45 percent in July.

There were speculations about a cut in interest rates since a bit of time, RBI had not made any changes in the interest rate in its last bi-monthly policy review and since then, people were waiting for the interest rate cut announcement. This is the first rate cut since October 2016.

In Wake Of 'Sham Election,' US Sanctions Venezuelan President Maduro
The news of Pineda's death before today's vote was announced Sunday via the Venezuela's Public Ministry's Twitter account. More than 100 people have died in violent protests in Caracas between anti-government activists and riot police.

"Excluding the HRA impact which will affect the CPI cumulatively, inflation would be a little over 4 per cent by fourth quarter as against 4.5 per cent inclusive of the HRA in the June statement (of RBI policy)", Patel said.

Reverse repo rate cut by 0.25 per cent to 5.75 per cent.

Though the Reserve Bank of India's decision to slash key lending rates was on expected lines, it could not lift the sentiments of the business fraternity as it felt a steeper cut would have been better. The RBI's monetary policy committee reduced the policy rate to 6%, a six-and-a-half-year low, but maintained a neutral policy stance citing several uncertainties to the inflation trajectory. But we are happy to see that the central bank has adopted a monetary policy that propels growth. It is autonomous of the Finance Ministry and fixes policy rates and keeps inflation within the target of 4 per cent. Being the country's largest lender, 90 per cent of SBI's savings bank accounts have balances under Rs 1 crore.

486 people appear in court over Turkey coup plot
Critics say Mr Erdogan is using the purge that followed the coup to stifle political dissent. Gulen is being tried in absentia, and denies any role in the coup attempt.

The rate cut will likely ease some of the pressure from the government and markets for action to lift the economy, which had annual growth in January-March of 6.1 percent - fast by global standards but India's lowest number in over two years. "The amalgamation of lower interest rates coupled with various progressive measures taken by the government will hopefully help buyers ahead of the festive season", he added.

Related News:

  • Philippines mayor among 15 killed in drug raids

    Philippines mayor among 15 killed in drug raids

    Mayor of the Philippines' Ozamiz city Reynaldo Parojinog was shot dead in a police raid on July 30 for illegal drug trade . Firearms and methamphetamines were recovered from the houses, media reports said.
    I am not a tax dodger, says Ronaldo

    I am not a tax dodger, says Ronaldo

    In June, a state prosecutor accused Ronaldo of four counts of tax fraud from 2011-14 worth 14.7 million euros ($16.5 million). Real Madrid talisman Cristiano Ronaldo will appear in a Spanish court today as he stands accused of evading millions in tax.
    UFC 214 Results: Jon Jones Crushes Daniel Cormier in 3rd Round

    UFC 214 Results: Jon Jones Crushes Daniel Cormier in 3rd Round

    But despite the pair being involved in a heated war of words between their two fights, Jones paid tribute to Cormier afterwards. He finally regained the belt after being formally stripped of the title in 2015 after his part in a hit-and-run accident.
  • 2 babies die in Phoenix after being left in hot cars

    2 babies die in Phoenix after being left in hot cars

    The deaths were the first and second cases of a child dying of heat stroke in a sweltering auto this year, Sgt. Police are still investigating his death.

    Kondogbia scores freaky own-goal as Inter beat Chelsea

    Thibaut Courtois saved the spot-kick, but Jovetic pounced on the rebound to give his side the lead. Morata made a low key start to his career at Chelsea with his first start for the Blues.
    Surprise, The Tesla Model 3 Is Launching At $44000 Not $35000

    Surprise, The Tesla Model 3 Is Launching At $44000 Not $35000

    Like its predecessors, the Model 3 is fully electric and on-board computers can handle driving tasks. Musk described how the company went through "production hell" to deliver its first three models.
  • Kathy Griffin Shaved Her Head For The Best Possible Reason

    Kathy Griffin Shaved Her Head For The Best Possible Reason

    Kathy lost her New Year's Eve gig with CNN and was heavily criticized all over social media for the graphic image. Maggie later shared the photos on Twitter , writing, "My daughter Kathleen Mary is a wonderful human being".
    Patriots DE Rob Ninkovich will retire today

    Patriots DE Rob Ninkovich will retire today

    He recorded 8 sacks in three straight years from 2012-14, and played for the 2014 and 2016 Super Bowl teams. Despite his seemingly sudden retirement, there are no hard feelings between Ninkovich and the Patriots .
    Samsung Galaxy Note 8 To Sport Dual Cameras; Module Spotted

    Samsung Galaxy Note 8 To Sport Dual Cameras; Module Spotted

    The Samsung Galaxy A7 (2016) runs Android 5.1.1 Lollipop right out-of-the-box and is upgradeable to Android 6.0.1 Marshmallow. Apart from this, this high end smartphone would come with its Emperor Edition offering a huge memory storage of 256GB.
  • Weir Group Plc (WEIGF) Reviewed By Analysts

    Weir Group Plc (WEIGF) Reviewed By Analysts

    It improved, as 18 investors sold EVRAZ plc shares while 80 reduced holdings. 14 funds opened positions while 23 raised stakes. The stock was bought at an average price of GBX 1,411 ($18.43) per share, for a total transaction of £1,622.65 ($2,118.90).

    India thump Sri Lanka in 1st Test in Galle

    Finger injuries ruled out Rangana Herath and Asela Gunaratne as India needed eight wickets to start the series on a winning note. I just want to give my best for the country and in the process I know I can achieve something for myself as well", he added.
    John McCain Voted Against Bipartisanship, Not for It

    John McCain Voted Against Bipartisanship, Not for It

    After another setback to this agenda Friday, Trump wrote, "3 Republicans and 48 Democrats let the American people down". The early Friday morning vote came after a series of unsuccessful votes by Republicans this week to repeal Obamacare.


Most liked

RBA Keeps Policy Rate Steady
Housing prices have been rising briskly in some markets, although there are some signs that these conditions are starting to ease. The Australian Dollar extended its gains from Monday following better than expected Chinese Manufacturing PMI data from Caixin.

EU To Impose Retaliatory Sanctions Against US
Germany has hit back at the U.S. for new American sanctions on Russian Federation that target Russia's Nord Stream 2 gas pipeline to Europe.

Sebastian Gorka delivers masterful defense of Trump's military transgender ban
And that is the most important factor by which we should evaluate changes to existing military personnel policy. Transgender costs add up to only around $2.4 million to $8.4 million .

Van smashes into Los Angeles crowd, injuring 9 people
Witnesses described a horrific scene with multiple victims pinned under the vehicle, and one man bleeding profusely from the head. About 7 p.m., officials towed away from the van , which had a flat tire and a damaged bumper, as a crowd of people watched.

Imran Khan named Shaikh Rasheed for the PM slot
He warned PPP co-chairperson Asif Ali Zardari and said, "Next is your turn, we will set out against corruption". PTI Chairman Imran Khan will address the gathering which will be held at Islamabad's Parade Ground.

'Chinese transgression in Uttarakhand to be sorted out locally'
India, which fought a war with China in 1962 over a separate part of the disputed Himalayan border, supports Bhutan's claim. About 15-20 Chinese troops entered 1 km into Uttarakhand's Barahoti sector this month, officials said on Monday.

Stardew Valley multiplayer beta to start this year
Chucklefish is anticipating beta release later this year, with the patch for Windows, Linux, and Mac coming in early 2018. Chucklefish also went on to outline just how Stardew Valley multiplayer will work when it eventually does arrive.

Microsoft Surface Plus Financing Program Lets You Upgrade Very 18 Months
The number of devices under the agreement can also change during the middle of the term as well, the post said. Surface Plus for Business lets SMBs add as many devices as needed, and a mix of models, to a single agreement.

What Enhanced Airport Security Measures Mean for You
The threat has eased somewhat, the intelligence official said, in part due to the implementation of enhanced security measures. The U.S. has officially ended the laptop ban.

U.S. 'successfully' tests THAAD by launching ballistic missile over Pacific
USA forces sent two B-1 bombers from Andersen Air Force Base in Guam on a 10-hour round trip Saturday over the Korean Peninsula. South Korea had earlier deployed two such units but the rest were delayed due to environmental concerns.

NYPD responds to Trump comments on using force during arrests
And as the President noted in a recent interview with The New York Times , "there are very few Republicans in Baltimore, if any". The Suffolk County Police Department wants its cops to know that they shouldn't listen to President Donald Trump's directions.

Charlie Gard: The public battle and 'raw' personal grief
Pope Francis tweeted: "I entrust little Charlie to the Father and pray for his parents and all those who loved him". USA president Donald Trump also weighed in, saying the United States would be "delighted" to help if it could.

Philander to remain in hospital overnight
Bavuma subsequently ensured South Africa avoided the follow-on by driving a Broad half-volley through the covers for four. Philander took two wickets on the first day of the ongoing third Test at The Oval in between bouts of a stomach bug.

Grand closure of campaign in support of the Constituent Assembly in Venezuela
Opposition leader Leopoldo Lopez holds a Venezuelan national flag as he greets supporters outside his home in Caracas on July 8. The assembly is to be tasked with amending the constitution passed under Maduro's late predecessor and mentor, Hugo Chavez .

Iran accuses U.S. navy of firing warning shots at its vessels
In January, the USS Mahan fired shots toward Iranian fast-attack boats as they neared the destroyer in the Strait of Hormuz. The Navy ship fired warning shots into the water over concerns of a collision, one of the officials said.