Bytes
Cut could allow banks to pass benefit
“In case of a low interest rate environment surrounding the economy and cash available in abundance, the risk of inflation moving up exists. Hence, the RBI doesn’t reduce the rates until it has been fully convinced about the inflation control. On the other hand though, since demonetisation banks are keeping a strong credit and a rate cut would have allowed them to pass on the benefits to the borrowers. Reduced EMIs could have made the demand to take an upward movement”
Dhiraj Jain, Director, Mahagun Group
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