RBI will present the first monetary policy of the new fiscal year today. RBI Governor Raghuram Rajan want to provide you double benefit via policy. First is He can open a new way to get cheaper loan with low EMI by reducing repo rate 0.25 to 0.50 percent, and the secondary is that he can introduce the new lending rate formula to the banks for instant cheaper loans. If that happens, you will get double benefit.
Rate cut is expected up to 0.25% to 0.50%
Finance Minister hopes that RBI will cut rates. As per the FM, Rate cut is a must to boost the economy. Inflation is also under control at the moment and government is also on track for Fiscal deficit target as well. So rate cut is possible.
According to SBI chairperson Arundhati Bhattacharya, RBI policy will focus on the issue of liquidity in the banking system. Currently, the Volatility currency has increased the liquidity issue. As per our Research experts Repo rate cut is expected by 0.25% in this policy. Even 0.50% cut is also expected.