From Maruti cutting production by 25% for sixth consecutive month in July to Sebi enhancing guidelines for share pledging, here are the top 10 business headlines on Thursday
1) Repo rate at nine-year low after RBI announces 35-bps cut; India Inc says banks should pass on benefit
The Reserve Bank of India (RBI) on Wednesday moved for an unconventional repo rate cut by 35 basis points, the first of such magnitude by the central bank, to arrest falling economic growth while insisting that banks must now pass on the benefits to their customers.
The central bank has lowered the growth projection for the current financial year to 6.9 per cent from 7 per cent earlier. It kept its inflation projection unchanged at 3.1 per cent.
With the RBI slashing the benchmark repo rate for a fourth straight time, India Inc on Wednesday said it was time banks passed on the benefits of rate cuts to end-customers, so as to encourage consumer spending and spur investment by companies.
The central bank has lowered the key policy rate by a cumulative 110 bps in the current easing cycle — bringing the rates to a nine-year low. Meanwhile, banks have cut rates by only 29 bps.
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