NOMURA - No changes likely in REPO interest ratio next year also
Posted on: 22/Dec/2017 12:56:08 PM
Nomura has informed that it is very likely that the Repo interest rates for the short-term loans given by the Reserve Bank of India to the banks may not change in the next year as well.
In the financial policy reported in October and December by RBI, there was no change in the Repo interest ratio. It continues at 6%, It is expected that this will continue in the next year as well.
Due to the increased inflation rate, price rise of commodities, and the price increase of the crude oil, there are no chances that the Reserve Bank of India will reduce the Repo interest ratio.
Further, with the recent change in the economy from the recession stage to growth stage, the Financial policy committee may not be interested in reducing the Repo interest ratio.
With the above status, there are no prospects of any reduction in the Repo interest ratio in the Financial Policy report due on 7th February 2017.
