Check: How Rate Cut Impacts Your Life?
BANGALORE: Earlier in December 2014 the former Chairman of Economic Advisory Council of India C.Rangarajan stated in a press conference that ‘RBI may cut rates early next year’ and the financial pundits had a field day until the official announcement was made reports TOI.
A 0.25 percent change in repo rate is not a big margin to consider but the implication it may carry is what the government foresees on. RBI till date holds to consistent policy with its new announcement that has laid a new policy path to wage on inflation and its surrogates.
On the day of announcement itself the share market saw a rise of 729 and 259 points for Sensex and Nifty respectively, this hike will strut a step to the growing financial status of the country. The change in repo rate had its effect to its related sectors which are sensitive to its yield making the realty index jump up 8 percent.
Share market investors are looking forward to its implementation; the loans given out will variate with the change the tenure period may take a fall. The interest rates as predicted can make difference as to the tenure of payment, the amount of interest in respect to tenure the slab rate may be as follows: the rate of interest at 10.5 percent lays out the payment be done original in 5 years, if reduced by 0.25 percent then there will be no change in the tenure.
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