RBI Governor Indicated for Repo Rate Reduction, EMI may also Decrease

If all goes well, then once again the EMI of common people loan can be reduced. Actually, Reserve Bank of India Governor Shaktikanta Das has indicated the reduction in repo rate.

RBI Governor says…

Regarding the repo rate reduction, Shaktikanta Das said, 'Today we are seeing that prices are stable. Inflation is far below four percent. We expect inflation to remain down for the next 12 months. In such a situation, especially at a time when growth has softened, there is some scope for further reduction in policy rate. '

However, he declined to say anything about the Reserve Bank's estimate of the current financial year growth. He said that whatever is to be said about this, will be made public with the announcement of monetary policy review on October 4.

Let us tell you that the 3-day review meeting of RBI's Monetary Policy Committee is starting on October 1. At the same time, the Reserve Bank has reduced its policy rate 'repo' by 1.10 percent in four times this year.

Corporate Tax cuts will Increase Foreign Investment
On Friday, the Central Government announced a cut in corporate tax. According to Shaktikanta Das, after this decision of the government, foreign investors will turn to India. Shaktikanta Das said, 'This is a very bold and positive step. As far as international investors are concerned, corporate tax rates in India have become very attractive compared to emerging markets in ASEAN and other parts of Asia. In my opinion, today India has reached a very strong position among the competition. This will attract more investment.'

Along with this, Shaktikanta Das also called the government's decision for domestic investment better. He said that companies will now have more money left to increase capital investment. On saving, some companies will increase investment and some may reduce their debt. This will improve their balance sheet.