Wednesday, Oct 21, 2020 | Last Update : 04:01 AM IST

195th Day Of Lockdown

Maharashtra1443409114960338084 Andhra Pradesh7192566588755981 Karnataka6406615157829286 Tamil Nadu6088555529389653 Uttar Pradesh4031013468595864 Delhi2827522506135401 West Bengal2603242287555017 Odisha222734190080912 Kerala204242131048772 Telangana1992761701091163 Bihar178882164537888 Assam169985139977655 Gujarat1332191132403417 Rajasthan1288591077181441 Haryana1237821059901307 Madhya Pradesh117588932382207 Punjab107096840253134 Chhatisgarh9856566860777 Jharkhand7770964515661 Jammu and Kashmir69832495571105 Uttarakhand4533233642555 Goa3107125071386 Puducherry2548919781494 Tripura2412717464262 Himachal Pradesh136799526152 Chandigarh112128677145 Manipur9791760263 Arunachal Pradesh8649623014 Nagaland5768469311 Meghalaya5158334343 Sikkim2707199431 Mizoram178612880
  Opinion   Edit  04 Apr 2019  RBI cut: EMI may not fall

RBI cut: EMI may not fall

THE ASIAN AGE.
Published : Apr 5, 2019, 12:01 am IST
Updated : Apr 5, 2019, 12:01 am IST

The rate cut is a blessing to the Narendra Modi government with the elections just a week away.

RBI governor Shaktikanta Das
 RBI governor Shaktikanta Das

The widely-expected quarter per cent rate cut announced by RBI governor Shaktikanta Das on Thursday is unlikely to see the benefit being passed on to consumers immediately or in full by banks with cheaper borrowing rates. Though the governor said he would look into this problem,  an earlier meeting with banks didn't yield any salutary results. The banks are more concerned with shoring up balance sheets as they face a liquidity tightness. Surely the government and the RBI realise a piquant situation has emerged, as one arm of the government competes with another in offering attractive rates to depositors. The rates on post office savings schemes, for instance, are around seven to eight per cent, compared to six or 6.5 per cent by banks. The banks are also tackling a mismatch in credit growth at 14 per cent and the deposit rate, that has been growing at 10 per cent.

The rate cut is a blessing to the Narendra Modi government with the elections just a week away. It will give a boost to business sentiment and some impetus to the growth rate, which dipped to 6.6 per cent in the October-December 2018 quarter. The slowdown in industrial production, manufacturing, exports and private investment is an embarrassment for the Modi government which had promised a robust economy and a growth rate higher than that of the earlier Manmohan Singh government, as well as a strong rupee. The benign situation on the inflation front, with India having one of the lowest inflation rates worldwide, also warranted a rate cut.

 

Tags: shaktikanta das, modi government