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India Gazette
11-06-2025
- Business
- India Gazette
RBI's policy rate cut to boost growth as inflation eases: BoB report
New Delhi [India] June 11 (ANI): The decision of the Reserve Bank of India (RBI) to slash the policy rate will boost growth amidst easing price pressures and infuse liquidity along with supporting credit flow, said a report by Bank of Baroda. The BoB report added that the RBI's surprise 50 basis-point rate cut, along with a phased 100 basis-point reduction in the Cash Reserve Ratio (CRR), has signalled a strong pro-growth stance. The announcements have been welcomed by markets and are expected to spur economic activity in the coming quarters. The Monetary Policy Committee (MPC) maintained its GDP growth forecast for FY26 at 6.5 per cent. The RBI revised the inflation projection downward to 3.7 per cent, highlighting its confidence in the current macroeconomic environment. On June 6, RBI's Monetary Policy Committee (MPC) reduced the policy repo rate under the Liquidity Adjustment Facility by 50 basis points to 5.5 per cent. Consequently, the Standing Deposit Facility Rate, which is the SDF Rate, shall stand adjusted to 5.25 per cent, and the Marginal Standing Facility MSF Rate and the Bank Rate shall stand adjusted to 5.75 per cent. 'These measures are expected to boost growth amidst easing price pressures and infuse liquidity along with supporting credit flow,' the report added. 'In the coming week, focus would shift towards the US Fed, wherein a pause is expected, especially since the labour market has been signalling some strength,' the report added. India's monetary move comes against a backdrop of renewed optimism in the global economy, as the United States and China begin working towards concluding new trade terms. The report added that global central banks have adopted a watchful stance, closely monitoring the inflation risks with growth. 'Global central banks closely monitored the evolving dynamics between growth and inflation,' the report added. The European Central Bank (ECB) recently cut rates by 25 basis points. As per the report, the attention now turns to the US Federal Reserve, which is widely expected to pause its rate changes given recent labour market resilience. 'In the coming week, focus would shift towards the US Fed, wherein a pause is expected, especially since the labour market has been signalling some strength,' the report added. (ANI)
Economic Times
11-06-2025
- Business
- Economic Times
RBI's policy rate cut to boost growth as inflation eases: BoB report
Reserve Bank of India will cut the policy rate. This move aims to boost economic growth. Price pressures are expected to ease. Liquidity will increase and credit flow will be supported. The Monetary Policy Committee maintained India's GDP growth forecast. The focus now shifts to the US Federal Reserve. A pause in rate changes is expected from the US Fed. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The decision of the Reserve Bank of India (RBI) to slash the policy rate will boost growth amidst easing price pressures and infuse liquidity along with supporting credit flow, said a report by Bank of Baroda The BoB report added that the RBI's surprise 50 basis-point rate cut, along with a phased 100 basis-point reduction in the Cash Reserve Ratio (CRR), has signalled a strong pro-growth announcements have been welcomed by markets and are expected to spur economic activity in the coming Monetary Policy Committee (MPC) maintained its GDP growth forecast for FY26 at 6.5 per cent. The RBI revised the inflation projection downward to 3.7 per cent, highlighting its confidence in the current macroeconomic June 6, RBI's Monetary Policy Committee (MPC) reduced the policy repo rate under the Liquidity Adjustment Facility by 50 basis points to 5.5 per the Standing Deposit Facility Rate, which is the SDF Rate, shall stand adjusted to 5.25 per cent, and the Marginal Standing Facility MSF Rate and the Bank Rate shall stand adjusted to 5.75 per cent."These measures are expected to boost growth amidst easing price pressures and infuse liquidity along with supporting credit flow," the report added."In the coming week, focus would shift towards the US Fed, wherein a pause is expected, especially since the labour market has been signalling some strength," the report monetary move comes against a backdrop of renewed optimism in the global economy, as the United States and China begin working towards concluding new trade report added that global central banks have adopted a watchful stance, closely monitoring the inflation risks with growth."Global central banks closely monitored the evolving dynamics between growth and inflation," the report European Central Bank (ECB) recently cut rates by 25 basis per the report, the attention now turns to the US Federal Reserve, which is widely expected to pause its rate changes given recent labour market resilience."In the coming week, focus would shift towards the US Fed, wherein a pause is expected, especially since the labour market has been signalling some strength," the report added.
Time of India
11-06-2025
- Business
- Time of India
RBI's policy rate cut to boost growth as inflation eases: BoB report
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The decision of the Reserve Bank of India (RBI) to slash the policy rate will boost growth amidst easing price pressures and infuse liquidity along with supporting credit flow, said a report by Bank of Baroda The BoB report added that the RBI's surprise 50 basis-point rate cut, along with a phased 100 basis-point reduction in the Cash Reserve Ratio (CRR), has signalled a strong pro-growth announcements have been welcomed by markets and are expected to spur economic activity in the coming Monetary Policy Committee (MPC) maintained its GDP growth forecast for FY26 at 6.5 per cent. The RBI revised the inflation projection downward to 3.7 per cent, highlighting its confidence in the current macroeconomic June 6, RBI's Monetary Policy Committee (MPC) reduced the policy repo rate under the Liquidity Adjustment Facility by 50 basis points to 5.5 per the Standing Deposit Facility Rate, which is the SDF Rate, shall stand adjusted to 5.25 per cent, and the Marginal Standing Facility MSF Rate and the Bank Rate shall stand adjusted to 5.75 per cent."These measures are expected to boost growth amidst easing price pressures and infuse liquidity along with supporting credit flow," the report added."In the coming week, focus would shift towards the US Fed, wherein a pause is expected, especially since the labour market has been signalling some strength," the report monetary move comes against a backdrop of renewed optimism in the global economy, as the United States and China begin working towards concluding new trade report added that global central banks have adopted a watchful stance, closely monitoring the inflation risks with growth."Global central banks closely monitored the evolving dynamics between growth and inflation," the report European Central Bank (ECB) recently cut rates by 25 basis per the report, the attention now turns to the US Federal Reserve, which is widely expected to pause its rate changes given recent labour market resilience."In the coming week, focus would shift towards the US Fed, wherein a pause is expected, especially since the labour market has been signalling some strength," the report added.
India Gazette
10-06-2025
- Business
- India Gazette
India's rising household debts are not worrisome: SBI report
New Delhi [India], June 10 (ANI): While household debt in India has been increasing over the past three years, a State Bank of India (SBI) report suggested that it's not necessarily a cause for alarm, especially when considering the context of the economy and the type of debt. It said India's household debt is manageable and not worrisome at all, as two-thirds of the portfolio is of prime and above credit quality and the rise is attributed to a growing number of borrowers rather than an increase in average indebtedness. Additionally, asset creation, such as home and vehicle loans, makes up 25 per cent, while productive purposes like agriculture, business, and education loans constitute 30 per cent. The Reserve Bank of India (RBI) views the rise in household debt as manageable, particularly since two-thirds of the portfolio consists of prime and above-credit-quality borrowers. As of now, India's household debt is at a relatively low level, 42 per cent, compared to 49.1 per cent for other emerging market economies (EMEs). SBI's analysis revealed that 45 per cent of loans, including personal loans, credit cards, and consumer durable loans, are used for consumption purposes. The RBI's ongoing rate-easing cycle has already seen a 100-basis-point reduction in the repo rate, leading to an automatic decrease in externally linked benchmarked interest rates. This is expected to provide substantial relief to households. During this rate-cut easing cycle, it is estimated that approximately 80 per cent of retail and MSME loan portfolios are linked to the External Benchmark Lending Rate (EBLR), suggesting potential savings of around Rs 50,000 to Rs 60,000 for households. This easing cycle is projected to continue for about two years, further contributing to a decline in household interest costs. Last week, the RBI announced a reduction in the policy repo rate under the Liquidity Adjustment Facility by 50 basis points to 5.5 per cent. This rate cut was accompanied by a cut in the Cash Reserve Ratio (CRR) by 100 basis points in four tranches of 25 basis points each starting September 6. (ANI)
India Gazette
06-06-2025
- Business
- India Gazette
RBI's rate cut will boost mid-segment housing affordability in top cities, say real estate executives
New Delhi [India], June 6 (ANI): The decision of the Reserve Bank of India (RBI) to reduce the policy repo rate will significantly help mid-segment housing across top-tier cities, translating into lower EMIs (Equated Monthly Installment) and better affordability, said real estate executives, terming it a 'strategic move'. The policy rates massively impact the sale of the real estate infrastructure, as lowering of rates means lower interest rates from banks for the home buyers and cheaper EMIs. The policy rate cuts have a massive impact on the real estate sector. This effectively lowers the cost of borrowing, making home loan EMIs easier on the pocket and thereby directly improving affordability for buyers. RBI's MPC, after the meeting today, decided to reduce the policy repo rate under the Liquidity Adjustment Facility by 50 basis points to 5.5 per cent. This larger-than-expected cut in the repo rate was accompanied by a 100 bps cut in the Cash Reserve Ratio (CRR), now reduced to 3 per cent, aimed at enhancing liquidity by Rs 2.5 lakh crore. 'The cumulative 100 basis point reduction over the last six months is a welcome and strategic move. We are particularly optimistic about its impact on the affordable housing sector, which has been under pressure on both the demand and supply sides. Lower interest rates will increase homebuyer affordability and improve the financial viability of affordable housing projects,' said Shekhar G Patel, President of the real estate industry body CREDAI. 'Not only will it make homeownership affordable and boost buyers' sentiments but it will also add new vigour to the economy, which in turn will augur well for both residential and commercial realty,' said Manoj Gaur, CMD, Gaurs Group. Anshul Jain, Chief Executive, India, SEA & APAC Tenant Representation, Cushman & Wakefield, in his analysis, said that RBI has today delivered a boost to consumer/household sentiment with a 50 bps cut, seen as positive for the real estate sector, particularly housing. 'With this, the cumulative cut for this year of 1 per cent is indeed going to help translate into lower EMIs and relatively better affordability, thereby helping the mid-segment housing across top-tier cities,' Jain added. Anuj Puri, Chairman of ANAROCK Group, shared similar views and added, 'This can potentially boost demand in the Indian real estate sector, especially in affordable and mid-income segments.' Commenting on the impact of the decision on the luxury segment, Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd, said, 'The demand for mid- and premium-segment homes has already been on the rise following previous rate cuts, and this larger reduction will further accelerate interest from both homebuyers and investors.' 'This move could spur refinancing activity and strengthen investment interest in branded properties known for their attractive returns, particularly among Grade A developers,' said Niranjan Hiranandani, Chairman, NAREDCO & Hiranandani Group. Umang Jindal, CEO at Homeland Group, said, 'More than numbers, it also paints a picture of a growing economy and a confident future.' Real estate sector has an important role to play. As per the government data, the real estate sector contributed around 7 per cent to India's GDP in 2018-19 and its share is expected to grow to around 13 per cent of India's GDP in 2025. (ANI)
