Repo rate cut will Impact on Loans Rate
Recently, RBI cut 100 basis points rep rate. On this occasion Manmohan Singh Prime minister announced, “Government welcomes this decision our objective to control inflation which has already begun to moderate.”
It is positive thing but the repo rate cut is beneficial only for Banks. It is the symptoms of loans rate down after the repo rate cut by RBI but all were failed. ICIC has increased their interest rats after the RBI repo rate down, what is the reason behind it?
Another thing which Prime Minister said, “As a result of these steps, the liquidity position in the financial system has improved considerably. The call money rate today is around 6.8 per cent. it is not enough to infuse liquidity. The liquidity must translate into expanded flow of credit to industry, trade and business. Suitable advisories have been issued by RBI and Ministry of Finance to the banks to ensure that borrowers are provided adequate credit, including export credit and working capital.”
The news was published in HT on the occasion of repo rate cut by RBI. All the news and statement of Prime minister shows that financial position will be balanced after the repo rate cut but the reality is beyond the statement.
Loans rates are not down financial positions are same after all this. Then why should RBI done this things?
It is positive thing but the repo rate cut is beneficial only for Banks. It is the symptoms of loans rate down after the repo rate cut by RBI but all were failed. ICIC has increased their interest rats after the RBI repo rate down, what is the reason behind it?
Another thing which Prime Minister said, “As a result of these steps, the liquidity position in the financial system has improved considerably. The call money rate today is around 6.8 per cent. it is not enough to infuse liquidity. The liquidity must translate into expanded flow of credit to industry, trade and business. Suitable advisories have been issued by RBI and Ministry of Finance to the banks to ensure that borrowers are provided adequate credit, including export credit and working capital.”
The news was published in HT on the occasion of repo rate cut by RBI. All the news and statement of Prime minister shows that financial position will be balanced after the repo rate cut but the reality is beyond the statement.
Loans rates are not down financial positions are same after all this. Then why should RBI done this things?
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