RBI cuts interest rate by 0.5% for Home, auto loans

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New Delhi

Home, auto and corporate loans would cost less after RBI on Tuesday cut interest rate by 50 basis points or 0.5 percent to spur investment and growth.

After the rate cut, the repo rate stands at 4-year low of 6.75 percent while the reverse repo rate stands at 5.75 percent. The RBI has kept the CRR unchanged at 4 percent.

As regards the price situation, the wholesale price index (WPI) remained in the negative territory for 10 months in a row and stood at (-)4.95 percent while retail inflation eased to a record low of 3.66 percent in August.

Global turmoil triggered by devaluation of the yuan and reports of a slowing growth in China have impacted Indian currency and stock markets.

The first quarter GDP print of 7 percent was below market expectations while industrial output growth in April-July came in at 3.5 percent.

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