1.RBI Governor: Interest rates to be cut by 75 bp

Reverse repo rate to be reduced by 90 bp to 4 per cent amid the current COVID-19 crisis

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2.Are interest rates set for a sharp fall? Will RBI reduce interest rates by 50 basis points?

Despite the reduction in repo rate by 50 basis points, the banks have cut MCLR by up to 10 basis points only benefitting the borrowers marginally. Expectations range from 25 basis points to 50 basis points for the next reduction with a mechanism that ensures that the reduction is passed on to the borrowers.

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