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Friday, March 27, 2020

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Rate Cut: BOLD WELCOME STEPS BY RBI


Rate Cut: BOLD WELCOME STEPS BY RBI

Perspective on the Announcement made by the RBI on the rate cut  by Mr. Shishir Baijal, Chairman & Managing Director, Knight Frank India

“BOLD WELCOME STEPS BY RBI”

“We are delighted with the Reverse Bank’s announcements which has far exceeded the expectations of the industry. 

The apex bank RBI has checked all the required boxes of rate cut, liquidity infusion and moratorium. These steps will help the economy to stay stable despite the lockdown and economic disruption.

The sharp repo rate cut of 0.75% by RBI is a step in the right direction. Sharper cut in reverse repo rate by 0.90% will compel banks to lend instead of parking surplus liquidity with the RBI.
The cut in CRR by 1.00% and the TLTRO will infuse liquidity in the systems, which seems to be the crying need of the hour. 

Shishir Baijal,
Chairman & Managing Director,
Knight Frank India

The moratorium of 3 months for all term loans and deferment of interest on working capital by 3 months will be very helpful at this point when most businesses are unable to have a steady cash flow.
We are hopeful that these measures will be complemented by further fiscal stimulus measures by the Central and State Governments to support demand in the economy. 

We welcome these measures by RBI and see this as a big relief for the economy in general and for the real estate sector which would have been one of the worst effected owing to its linkages with overall economy”.


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