RBI likely to cut repo, reverse repo rates on Saturday

Mumbai: There is a certain amount of good cheer amongst consumers as the Reserve Bank of India (RBI) is likely to cut repo and reverse repo rates on Saturday. This is a part of its fiscal stimulus package that the Prime Minister now heads.

The RBI is likely to cut the repo and the reverse repo rate but leave the CRR untouched. A cut in reverse repo will have a direct impact on home loans that will become cheaper.

The RBI is also likely to announce a fiscal package for housing, auto and export sectors.

A reduction in excise duty is also likely for commercial vehicles which will enable a drop in prices for the same.

There is also a special line of credit for non-banking financial companies, housing and auto sector expected.

Additional support for infrastructure and export sector is expected too.