Why Did the RBI Cut Interest Rates After 5 Years? | Vantage with Palki Sharma | N18G
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- เผยแพร่เมื่อ 9 ก.พ. 2025
- Why Did the RBI Cut Interest Rates After 5 Years? | Vantage with Palki Sharma | N18G
The Reserve Bank of India announced its first interest rate cut in five years, slashing repo rates from 6.5% to 6.25%. The decision will make loans cheaper and is expected to boost household spending in the country. How will this rate cut affect your EMIs? Should we expect more rate cuts? Palki Sharma tells you.
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RBI | RBI Cut Interest rate | Reserve Bank of India | RBI News | RBI repo rates | Reserve Bank of India | Repo Rate | EMI | Firstpost | World News | News Live | Vantage | Palki Sharma | News
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Vantage is a ground-breaking news, opinions, and current affairs show from Firstpost. Catering to a global audience, Vantage covers the biggest news stories from a 360-degree perspective, giving viewers a chance to assess the impact of world events through a uniquely Indian lens.
The show is anchored by Palki Sharma, Managing Editor, Firstpost.
By breaking stereotypes, Vantage aims to challenge conventional wisdom and present an alternative view on global affairs, defying the norm and opening the door to new perspectives. The show goes beyond the headlines to uncover the hidden stories - making Vantage a destination for thought-provoking ideas.
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Banks in India are the real robbers even with this rate cuts they don’t cut rates for existing loans and worst is they just don’t function ethically especially SBI
Need to pay processing fee to reduce ROI in loan account, another day light robbery from bank. When a customer has 20+ years of commitment to pay EMI, why bank cant take moral responsibility to pass on the benefit to customer.
Specially sbi processing fees are very high compared to other banks, no use even with repo rate is reduced banks will not pass this to customers directly without processing fees😂
Forget about the reduction in interest rates these banks deny loans to the ones who need it or are common man. These loans for just some specific idiots which already have a lot of assets
1000%% true sbi is the biggest looters in India
@@puneethmohana5131 will you be okay paying a higher interest rate if rates go up?
Watching the example of 39000 EMI with 800rs in bank account
I hear you...stay strong.
food prices are super high
Until this is solved, people will not spend
*prices
Food prices are average as per my knowledge
@@programmingwithsunny6121 mostly u r not from cities or u are earning cray that the prices are not affecting u
Stop freebies and inflation will go down
Through zomato and Swiggy it's high
Economic slowdown for the poor people only.. because a normal 3 BHk comes above 1 CR now a days and everything is being pre booked too
80lakhs for 300 sqft in mumbai suburbs, that too surrounded by slum, no garden or park, surrounded by crowd, no space for walking.
The problem is in other developing countries priority is given to 1st time home buyers with lesser loan interest rate and so on here in India rich will buy even 50 flats hoard then till the price increases and then sell. Because even top politicians do this so the government just allows this to continue. Such a shame in the Worlds largest democracy
The interest should be higher for second time buyers.
Yeah when it comes to house 1 CR is nothing now in metro cities
Yes couple of days back visited near by project and their 2/3 BHK flats prices are 60 and 80 lakh respectively and 90% flats already booked on launching.
Tax rate cut, repo rate cut, huge supply demand gap, dead rupee....inflation will blast through the roof.
Perfect disaster in waiting for Indian Households. Food will be a luxury moving forward.
Unfortunately the govt in catch 22 situation. Jeopardize growth or live with inflation. Balancing act impossible while rupee is depreciating.
Are you an economist?
@User-mncbjlfjrebxkl yes
you really think the government doesnt have economics who calculate these things? stop being such a doomer
@@avintai96 are you naive enough to believe govt works for your welfare?
Dear it's politics otherwise how on earth can you justify a direct tax slab that begins at 5x the per capita?
@ExplorerXyz-om6mz
Haha, Investors don't care about your opinions_ India being popular or wild comparisons with Latin America...
They depend more on data which is everything but positive.
People here teaching economics.. chill guys.. dont spend unnecessarily, then the inflation will stay in check.. inflation increase only when spending increases.. take the extra savings and dont spend.. its also an option.. economics 101 right?
Do you have kids??? Kids these days are the main culprit for overspending!!!
😂😂who taught u economics?
If u save now money value decreases with inflation .
Best is invest not save.
@@Dakshin-x3f isn't investing a form of saving? I am sure spending and saving are not the same in any form of economics..
Anyways, to allow you to understand better.. by savings, it doesn't mean stashing cash under your mattress.. saving is saving in any form.. take a chill pill dude..
@@monishasekar4716poor kids ..
Do you know psychology 101 . More money , more the crowd spends.
Without increment of salaries it will not work. Minimum 50% wage increment under 60k per month salary people is mandatory . The low celeing of 30k is too low for extra savings for extra expenses.
Purchasing power is declined due to high prices. Instead of interest rate tax should have been reduced to reduce the prices so purchase would increase
Thank you team for this information. This is what makes your contents different. Appreciate it...
Now realtors is increasing prices😮
This is a new gimmick as every one is moving to New tax regime where people do not opt for any home loan as there is no tax benefits.
So to attract the customers RBI come up with this.
Everything has a cause 😊
dont get carried away - don't spend, start saving!
First Are the banks ready to lower the interest rate for the customers???
From where will the people spend? The capitalist influences on the government have made everything so expensive and employment concerns have made the population fearful. A penny saved is a penny earned.
Is it applicable only new loans or old loan?
I really appreciate this news anchor which is best but the problem is bank will reduce the rate of interest then they will gradually increase rate of interest this is just a trap to trap innocent people
What about interest rates on FDs ? Lowering this will negatively impact income of those living on bank deposit interests
Ideally corporates also should increase salaries
Not only tax rates, wages also must increase inorser to spend
RBI has only cut interest rate is because of the pressure from the government because we are at 12% inflation and cutting rates will increase inflation further. Modinomics is going to finish Indian economy completely. This cut is completely unjustified. Nobody takes a loan looking at EMI or interest rates and 0.25% cut is not going to change anything much. When we go to change interest rate the banks charge money it is not free of cost. Secondly deposit rates and all pension rates and insurance returns will reduce which is why this rate cut is political and just to help corporates.
So let me get this straight. We have an economic slowdown and no growth happening, so what we should do is keep interest rate high. How does that work. And yes inflation is a problem but no growth is an even bigger problem.
@vabhdman Haha...RBI's primary duty is to remain apolitical but they have framed their policies in last 11 years under political pressure or else the RBI governors have been thrown out or had to resign. Simple thing is growth is industry requirement not the regulators role. The industries and corporates sitting on record profits due to government policies and reduction in taxes but not creating new employment generation or even businesses is the problem so it is not RBI but the government of the day's duty to look after inclusive growth which is exclusive to few corporates and industries.
@@prashantshah1396 Industries don't re-invest because they have record profits. They re-invest because they see demand, and we don't have demand. And the demand we do have is fulfilled by cheap chinese goods that Indian manufacturers can't compete with. Having high interest rates makes the cost of any new business higher, because financing is a major cost for any new business. Which also makes our products more expensive.
@vabhdman wow so you understand this so well then what is the solution you share with modi because he doesn't understand it and just keeps marketing about himself and his schemes all of which failed miserably. If this is what is true than why give so much profits and tax break to these industries in the first place? Also why keep no condition of minimum employment generation when giving tax break?
@@prashantshah1396 Why would you think I'm a modi supporter or I have the solution. I'm no fan on Modi but I also know the problems facing this country is just one government away from being solved. There is no solution to India's economic problem, we just have a huge poor, illiterate and unproductive country, where there is the oversupply of things like engineers and MBA's and huge undersupply of skilled factory workers plus even if we had enough skilled workers, our country has so many regulatory, economical and social barriers to opening any new industry here that its a miracle we have any industry anyway. We still can't leave our socialist tendencies (look at you even talking about minimum employment generation) and we have too much democracy to make super big decisions (even Modi failed with the farm laws) and too divided to look at the bigger picture. So there is no solution to India, we will never become a developed country, the only thing we can hope for is becoming a country rich enough so we can give food and medical benefits to most of our people and thats it.
Don't blame global. Blame modi government
@@Adi-oc2hd Modi government is doing worst comparing last 10 years than any other countries in the world
He just don't care about middle class.
I too was thinking in past its not because of modi but after odisha election its clear modi .
Inflation in everything is 5 times , food , vegetable sudden skyrocketed because their need to buy from up and not wb.
If u leave inflation whole capital is gripped in vip culture , roads blocked, xyz bjp person is going ..... Total disaster . They are spending money to paint the already painted highways.....😂and changing names and coloring orange.
Another chinese bot, everyone knows modi is strong and that's why India is now on global stage
To see how good Modi is, just look at our Neighbours. Sri Lanka, Bangladesh, Pakistan, Nepal. At least hes not selling our country.
@@carthicss1 compare with higher aspirations. Do u compare how good your result was worth failures? Dumb guy!
When fiscal push is given to the growth in the budget 25 monetary policy has to support that push by reducing interest rates. Lot of money is left in the hands of people( nearly a lakh crores) to revive spending and thereby generate demand for goods and services. If this pent up demand is to be met additional investments are needed. So it here reduction in rate though not substantial would help credit revival which would support growth. Last five years mostly attempt was to tame inflation. So rates could not be reduced as it would add to liquidity which in turn puts pressure on prices. Since budget 25 is growth oriented both fiscal and monetary policies need to support it in a complimentary way.
Indian government is in Panic mode. First tax relief, now rate cut, soon more deductions on import duty. Although The GDP is dropping hard and inflation is rising. The stock exchange already smells problems ahead!!
If loan is given in low interest rate it means they want people to take loans so you can take more risks to see growth
For a few days the interest rate will come down with a 0.25%. After that Banks will waive off a 500 thousand crores loan of Mr. Preetham Badani and interest rates will be doubled for the common man to cover that loss 😂😂😂😂
I do not want the interest rates to go down. I am about to lock in a 10 year fixed deposit after booking stock profits. Stocks are at life time high and might crash soon..
then why put money now
Senior citizens will be most affected because of reduced FD rates.
@@surajm4547 Yes i agree
Banks not reducing the rate..
From when is this effective?
From when this will be implemented?
high gst is also the main reason for economic slowdown
Unless your income is among top 0.01% and knows how to play with credit, higher emi is preferable over loose inflation.
These reckless policies can wipe your purchasing power significantly, especially if you are in the lower and middle sections of society.
Hallelujah!!! I'm favored and blessed with $60,000 every week! Now I can afford anything and also support the work of God and the church.
After raising up to 60k trading with her, I bought a new house and car here in the US and also paid for my son's (James) surgery. Glory to God.shalom.
I know Rose M Elaine , and I have also had
This is what ROSE M Elaine does, she has changed my life.
Absolutely! I have heard stories of people who started with little or no knowledge but managed to emerge victorious thanks to Rose M Elaine
what’s her contact information?
Dropping interest rate always fuels more inflation. I think big business and middle man culture fixing prices on food we know farmers not getting rich.
I don’t think banks pass on the benefits to customers. At least LICHFL never does. They sometimes charge heavily for passing on the benefit. And suddenly they raise it without even a message. EMI amount remains the same so we don’t realise, the tenure keeps increasing.
Both the RBI Governor Shri Sanjay Malhotra Sir and Palki Sharma Ma'am are from Rajasthan, India.
I am from Andhra Pradesh, India.
EVERYTIME RBI CUTS INTEREST RATE, HDFC JUST INCREASESMINE, ASKEDTHEM, THEY TOLD ITS BANK POLICY.
Good research
She is saying 6.25% but hdfc is offering house loan at 9.2% which is true
Very nice
Presentation of Palki Sharma is amazing. But sometimes she is pausing a bit more than is required it feels.
Never build or buy homes using loans
Let it take you 10 years to build your home cash
But you own it after that.
And you will spend 1/4 of what a loan will cost u in the end
Absolutely true !! Am talking from my own personal experience.
Useless announcement and useless government
5:25 he's imposing tariffs on those countries who are not cooperating with them about the 'illegal immigration' situation and as far as we know India has cooperated so far in this issue, so I think we don't need to worry that much for now.
Let's see what will happen on 12feb as Mr Modi will meet trump .hope this will improve stock market
Looks like a scapegoat has been set to display to the public.
Does students loan interest rate reduce
10 saal se tax ke nam pe gala daba rakha tha.
After taking loan Interest will increase 2% more
from 6.5 to 8.75 now 8.5 howww watt a magic
Aah this is bs, before every summer they decrease rate and in rainy season they increase.. banks, ask your bank for rate change dates in last 5 years, you can see pattern . Just like throwing some bait and catching fish
1% taxpayers will now drive the country’s economy by their 80K savings benefits that the Govt has put in their pockets 😂😂😂😂
Clearly you don't understand how money works.
With that logic no wonder you're in 99%
@ that is what says Miss.Palki Sharma.
Becuase RBI do not know what else to do? So trying something hoping laxmi will help, else we will blame laxmi :)
😂
Important life lessons, never buy out a loan in life , never ever
Me wondering how people would spend money when most of them couldn't get jobs or enough salary
Last time my EMI tenure increased due to higher interest. Will it get reduced now?
Yes
Given Indian corporate's recent behavior patterns, they'll in all likelihood use every government booster to their own advantage without passing any of the benefits and profits to the working class. Government has to first crack the whip on this behavior from the so-called leaders without leadership.
What is bank account number of reserve bank of india ? Using this bank account number reserve bank of india gives money to other bank accounts . This bank account can print money , why it needs interest rates .
When You Take a Home Loan for 20 Years, Major Portion of Your EMI goes towards Paying the Interest for almost 10 Years. If your EMI is 27000 then 22000 Goes towards Interest Payment and Only 5000 Towards Principal. My Advice, Don't Take loans even if they reduce 2% more. No Loans, No Worries.
Some ppl need loans to buy house 🏠 the thing is we need to pay extra to finish home loan quickly
Even in floating interest rate lic never cut our loan but when rbi did rate cuts , it only increased when rbi increased.
Trust me lic lots a lot so do banks.. Thats the reason they could above loss of another organisation.
Same goes for bank, ur money isn't safe there too...😂
Its a curse to b middle class in india.
Its same story with all the banks
Which financial advisor to consult? You think you are living in USA?
inflation affects only the middle class.lower middle class , people in IT , good jobs are least bothered about prices and inflation they just want more cash in hand to spend
House price will also increase lol
lol… gov gave a tax cut … and they know exactly how to get those back ….. what more spending when corporations give salary as bread crumbs?!!! Not buying anything…. Let the economy go down
0.25% really
Increase salary to the working class
Why u think .25 bank will pass full to customers?
Due to EBLR benchmark rate, which is mandatory.
Indians are more interested in their future and save for their secured future. They will not and should not buy unless they are sure of its utility.
You cannot expect Indians to be spent threft like Europeans.
European idea of economy will not suit India for Indians are more interested in simple dignified living.
It would still be good if the the janata continue to not spend. These people keep giving these penny cuts and benefits, it’s way to less to start spending , this just gives little bit , just a little bit breathing space
Accommodative stand
Emi decrease increase bank liquidity... Inflation is sky rocketing... Decrease ces and gst... Then purchasing power increases.. This economic slow down is Bjp caused this mess....
.25 % no major impact
But 0.25% increment in Annual Salary will Be Good 👍
It's not about purchasing power; rather, it's always the government. Just look at the US government and the Indian government. First, we must address India's main issues before we start talking about purchasing power.
Just look at employability and then at the earnings of our youth-you'll understand how badly they are suffering. When it comes to poor people, they aren't even in this game.
Nowadays, I feel like we're all playing Squid Game-Red Light, Green Light.
Allow bitcoin and other crypto currencies. Banks should not have the dominance of credit and money supply. They act like mafias.
The Banks in India who increased the interest rates in past will not decrease for existing loans. and that's why RBI sucks!
y bank don't follow rbi rules
Why do middle class has to spend and pay additional GST on every expenses.
Reduce spending on unwanted things
Even groceries buy unpacked Dal chaval to avoid GST.
Why we pay mindlessly GST, what for to give freebees for lazy guys. फ्री खानें का आदत हुआ है
Go and check some rural areas youths sit idle even though they can earn by doing farming works.
reduce gst
I expected 50Bps
অটো অফ লাইন সেইভ 3:00
Rbi cannot make big difference. Increase corporate tax rates. Make them accountable for the wealth inequality. Make labor laws that could give the share of working class from the corporate ceos. Bring strong insurance schemes for everyone including gig workers like swiggy, zomato delivery partners. Give insurance benefits to poor of poor without strings attached. So that their fear for future will reduce thereby increase spending. Depending Only 2% of the population that is the middle class alone willnot give much results. Focus on lower class also and solve What are there pblms.there pblms are unexpected hospitalisation without insurance / worst swiggy, zomato insurance scheme, school fees,...
Increase corporate tax? New business will go to Vietnam.. you are not the only player in town
Who cares. India has variable interest mortgages for all practical purposes. So people cannot plan anything ahead
Lolipop to Indian by Modi Govt. 😆😆
আপু আমি কিছু করতে পারভ না ফরেন মিনিস্টার যা বলেছে তিক তাই,হবে,,,আমার আইডি ওয়াল্ড টাইম ব্যাংক ডাবত ডচ 5:08
3:24
Shrinkflation is on rise
Modi realized that people are spending. Gujarati business is suffering. So some perks for rest of India.
Kaash koi 5 lakh ka loan de de 😅
Kya karna hai 5 lakh ka ?
@shravan97 bahan ki sadi aur koi kaam nhi mujhe paison ka
Banks will not pass the benefits of rate cut to customers.
Banks will use this opportunity to bridge the bad loans given to business friends of Modi govt. 😢
Welcome to bjp rules 😂😂😂
আমি কি করব্বহ আমার কাছে সব টিকানা আছে অল টাইম 2:33
Rate cut after 5 years....thanks Modiji....All because of you and Nirmala Tai😊
Everyone knows only looting.
Jab pants lagaee phattne khairaat lagee battne
25 basis point what relief? 😂 we need way more cheaper loans wont see any improvement. What kind of inflation with cheap loans? Consumption and investment in India decreasing drastically.
Depreciating rupees will counter the Trump-tariffs
I thought India is a super power due to the highest economic growth (or just for rich people?). Then why the rate cut is needed?
Good move by RBI... 👌 i am glad the current govt is sharp and very focused unlike before.
it won't make a dent..... at least 75 basis points cut is required given the govt haven't done much since the last yr
Nonsense
Who cares about loans
cute blazer