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RBI Credit Policy Update on 17 Apr 2012

It is worth mentioning here that Reserve Bank of India Governor D Subbarao has slashed short term lending rate by 0.50 per cent to 8 per cent and this move is going to reduce the cost of home, auto and corporate loans. However on actual ground floating rate clients may see their rates being revised in a period to 3-6 months and one need to keep reminding these home loan providing companies. The RBI Credit Policy is the most watched event.

Deceleration in growth and softening of inflation has led to reduction in the repo rate at which RBI lends to bank. Hopefully the rate cut will help in taking India forward at 9 per cent growth rate level.

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