RBI is trying to turn the tables and made sure that the housing loans are cheaper so that more and more people looking for their own accomodation would go for the option. India’s newly minted monetary policy committee delivered a surprise 25-basis-point cut in the repo rate to 6.25 percent, as Reserve Bank of India Governor Urjit Patel presided over his first policy review since his appointment last month. The latest cut extends an easing cycle that began in January 2015 under Patel’s predecessor Raghuram Rajan and reduces the repo policy rate to its lowest since November 2010. All six-members of the monetary policy committee comprising Patel, two other RBI officials and three government appointed economists voted for a cut. The RBI said expectations that food inflation would ease in the months ahead had opened up space for policy action. Let us all wait for ache din. Thus RBI is proceeding on the expected lines under new Governor.
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