Reserve Bank of India may reduce interest rates
The Reserve Bank of India said that it has more headroom to reduce rates following a drop in oil prices which reduces pressure on inflation.
RBI deputy governor said that the central bank today has more room to cut interest rates. Factors suggesting more room are growth somewhat lower than expectations that may have a positive impact on core inflation.
With professional forecasters slashing their expected growth rate for the Indian economy, there is widespread hope that the central bank would cut interest rates.
It is expected by the analyst that the government and RBI would take measures such as direct sale of dollars to oil companies to support the rupee.
This is the second time in less than a week that the deputy governor has hinted at a rate cut. The deputy governor of RBI also indicated the unlikelihood of a reduction in reserve rates saying that liquidity in the banking system is close to RBI’s comfort level.
To read more real estate stories:
SBI may not reduce interest rate immediately
Experts think property price may not reduce
Source: Times of India
[...] Magazine, chairman & MD, CBRE South Asia said that it is really disappointing that RBI has not cut down the key policy rates. They are hoping some relaxation in the form of a cut in cash [...]
[...] Reserve Bank of India may reduce interest rates [...]