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Apr 17, 2012

RBI cuts Repo-Rate by 50bps

IN · · 2 comments
Business News: The Reserve Bank of India has cut the repo-rate by 50 basis points on Tuesday for the first time in last three years. The impact of the cut in favor of the people as they will pay less for the home, auto and corporate loans.

The apex bank cut the repo-rate to boost the economy and support the liquidity in the market. The soaring inflation has been the major issue for the economy which touched double digit.

The cut in the repo-rates or the key interest rates, the loans will be cheaper and that will boost the liquidity in the market. Companies like auto, realty have been speculation a good response following the recent cut in the repo-rate by the RBI.


  1. It’s a very interesting blog, providing very useful information regarding home loan.
    Thank you for sharing such useful information with us. Moreover, The Rate at which bank borrows money from RBI is now stands at 8.0% as it was 8.50% earlier.
    Know The Latest updated Home Loan Interest Rates after this Surprise change by RBI.
    Visit At: http://www.dialabank.com/article.cfm/articleid/547

  2. RBI has to cut repo rate in April 2012 policy

    The repo rate is a tool that the RBI can use to improve liquidity in the system. Lower interest rates do not directly add liquidity into the system but it can indirectly help liquidity. Banks by passing on lower interest rates to borrowers can increase demand for credit leading to a multiplier effect. The multiplier effect helps raise deposit as well as broad money growth. However lower rates work with a lag and the later the RBI postpones a repo rate cut, the later the easing of liquidity conditions. Read More. . .
    Visit : http://investorsareidiots.com/2012/03/rbi-has-to-cut-repo-rate-in-april-2012-policy/