RBI Cuts Repo Rates By 0.25 per cent; Auto Loans Likely To Get Cheaper
Car loans are currently available at an average of 11 per cent interest and while we wait to find out by how much this rate is likely to go down by, the auto industry is definitely looking forward to a possible rate cut.
Follow us on
Highlights
- Repo rates will now reach a 7 year low of 6 per cent
- Car loans are currently available at an average of 11 per cent interest
- The automotive industry looks forward to a positive growth this year
The Reserve Bank of India (RBI) announced a 0.25 per cent cut in the repo rate in its third bi-monthly monetary policy review. This will have a direct effect on the interest rates which will now reach a 7 year low of 6 per cent. The decision to reduce key lending rates comes after four policy reviews in which the repo rates remained unchanged. The central bank reduced it by 25 basis points to 6.25 percent only last year in October. "The decision of the MPC is consistent with a neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of plus, minus 2 per cent, while supporting growth," the third bi-monthly monetary policy statement said.
This in turn means that loans will get cheaper and for us that spells good news for those wanting to buy an automobile or even homes. We are however interested in the former and are very happy that auto loans are likely to get cheaper which means the spending capacity will definitely increase and more people will now buy cars.
Arundhati Bhattacharya, Chairman, SBI said, "The RBI decision to cut repo rate was a welcome move and will perk up market sentiments. The policy commentary was nuanced and balanced indicating upside risks to inflation have waned, whereas growth impulses in industry and services are weakening. We are hopeful that this measure should enable a gradual recovery in credit cycle with a revival of demand."
Also Read: Cars And Bikes Get Cheaper Thanks To GST
Car loans are currently available at an average of 11 per cent interest and while we wait to find out by how much this rate is likely to go down by, the auto industry is definitely looking forward to a possible rate cut. Sumit Sawhney, Country CEO & Managing Director, Renault India Operations, said, “With the macro-economic headwinds like the retail and wholesale inflation at an all-time low, current account deficit under control, a rate cut by 25 basis points by the RBI in its third bi-monthly monetary policy review is well-timed and justified. Further, the industrial growth continues to remain subdued. The rate cut would give a fillip to the market sentiment as the Indian stocks are trading at a record high. In addition, the government unveiled the GST on July 1, raising confidence among investors. It is a welcome and much needed measure which will cheer up the entire automobile industry and will further provide a boost to the economy. However, the real impact of this rate cut will be visible when the commercial banks pass on the benefit to the end consumers by lowering the interest rates on car loans,"
Giving us a better understanding on the way this rate cut will affect the automotive industry was Abdul Majeed, Partner Price Waterhouse said, "The RBIs 25 basis points cut in the report rate is a good move. It will surely lead to more demand for automobiles amongst customers. The monsoons have been good so far and with GST benefits settling in, commercial banks will surely pass on the benefits of reduced loan rates to the customers."
This in turn means that loans will get cheaper and for us that spells good news for those wanting to buy an automobile or even homes. We are however interested in the former and are very happy that auto loans are likely to get cheaper which means the spending capacity will definitely increase and more people will now buy cars.
Arundhati Bhattacharya, Chairman, SBI said, "The RBI decision to cut repo rate was a welcome move and will perk up market sentiments. The policy commentary was nuanced and balanced indicating upside risks to inflation have waned, whereas growth impulses in industry and services are weakening. We are hopeful that this measure should enable a gradual recovery in credit cycle with a revival of demand."
Also Read: Cars And Bikes Get Cheaper Thanks To GST
Car loans are currently available at an average of 11 per cent interest and while we wait to find out by how much this rate is likely to go down by, the auto industry is definitely looking forward to a possible rate cut. Sumit Sawhney, Country CEO & Managing Director, Renault India Operations, said, “With the macro-economic headwinds like the retail and wholesale inflation at an all-time low, current account deficit under control, a rate cut by 25 basis points by the RBI in its third bi-monthly monetary policy review is well-timed and justified. Further, the industrial growth continues to remain subdued. The rate cut would give a fillip to the market sentiment as the Indian stocks are trading at a record high. In addition, the government unveiled the GST on July 1, raising confidence among investors. It is a welcome and much needed measure which will cheer up the entire automobile industry and will further provide a boost to the economy. However, the real impact of this rate cut will be visible when the commercial banks pass on the benefit to the end consumers by lowering the interest rates on car loans,"
Giving us a better understanding on the way this rate cut will affect the automotive industry was Abdul Majeed, Partner Price Waterhouse said, "The RBIs 25 basis points cut in the report rate is a good move. It will surely lead to more demand for automobiles amongst customers. The monsoons have been good so far and with GST benefits settling in, commercial banks will surely pass on the benefits of reduced loan rates to the customers."
# RBI# Reserve Bank Of India# RBI repo rate cut# RBI rate cut# cheaper auto loans# auto loans# car loans# Auto Industry
Stay updated with automotive news and reviews right at your fingertips through carandbike.com's Google News
Related Articles
In Q2 2022 About 62% Vehicle Loans Taken In The US Were For Used Cars: Report
Buying Used Cars: Things To Know About Used Car Loans
RBI's Repo Rate Hike Likely To Have Nominal Impact On Car Loans And Sales
Toyota Bets On Start-Up Tugende's Small Loans To Boost Africa Business
TVS XL100 Gets 'Buy Now, Pay After 6 Months' EMI Scheme
Latest News
Royal Enfield Goan Classic 350 vs Classic 350: Differences Explained
Hyundai Ioniq 9 Electric SUV Revealed: 3 Rows Of Seats, 620 Km Range
Honda’s Electric Scooter For India To Feature Two Swappable Batteries
Royal Enfield Goan Classic 350: In Pictures
Royal Enfield Goan Classic 350 Unveiled; Launch On November 23
Stellantis Unveils New STLA Frame Architecture For Body-On-Frame SUVs, Pick-Up Trucks
Brixton Cromwell 1200, Cromwell 1200 X: In Pictures
Jeep Wrangler 4Xe Willys 41 Unveiled; Pays Homage To Iconic Willys Jeep
Lexus ES Facelift Unveiled At 2024 Guangzhou Auto Show
Brixton Crossfire 500 X, Crossfire 500 XC: In Pictures
- Home
- News
- Auto Industry
- RBI Cuts Repo Rates By 0.25 per cent; Auto Loans Likely To Get Cheaper
