Mumbai: In its much-anticipated move, RBI on Thursday announced a cut in repo rate by 25 basis points. The experts have welcomed the move and have also expressed hope that the banking sector will follow up by cutting down on interest rates.
ETV Bharat talked to economic expert Aakash Jindal who appreciated the move and said that it could also help the government pull up the GDP in coming days.
"Now there is a possibility that home loan rates, auto loan rates, consumer loan rates and the rate of interest on all kinds of loans may get reduced.. when there is a reduction in loan rates, the buying capacity of public will increase. In simple terms, since one man's expenditure is another man's income.. the overall impact of the cut in repo rate would be positive for the manufacturing sector, job creation, consumers and it will also help in GDP growth" said Aakash Jindal.
The economic expert also said that now we should hope that the banking sector also follows up with the RBI's step and cuts the interest rate down so that the general public can get the benefits.
FICCI also welcomed the move and its president said that there is room for a further rate cut.
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