08 Aug 2019
The Reserve Bank of India will be cutting interest rates again so to help boost the country’s economy. This will be the fourth interest cut rate to take place this year.
India’s central bank stated that the interest rate cut, which will take the country’s key lending key rates to a new low, is required to improve the economic situation and growth. The cut will also help the private investments in India.
Responsible of India’s rate cuts is the Reserve Bank of India’s current governor, Shaktikanta Das, who has been in this position since December 2018. The loans given out by the Reserve Bank of India have a 5.4% reduction on their interest rates. The interest rates in India have not been this low since April 2010. Moreover, the interest rates are expected to be lowered further in October 2019.
India’s economy has not been very strong this year, seeing its GDP fall to 5.8% in Q1. Issues with consumer finance providers and the credit squeeze that followed the country’s general election are thought to be the main reasons for the economy’s growth at a slower pace.
Moreover, the ongoing trade war dispute between the U.S. and China has affected the global economy, thus also influencing India’s economy.