{"id":1254,"date":"2020-05-22T09:15:37","date_gmt":"2020-05-22T09:15:37","guid":{"rendered":"http:\/\/myassetsconsolidation.com\/blog\/?p=1254"},"modified":"2020-05-22T09:15:37","modified_gmt":"2020-05-22T09:15:37","slug":"rbi-rate-cut-and-my-take","status":"publish","type":"post","link":"https:\/\/myassetsconsolidation.com\/blog\/rbi-rate-cut-and-my-take\/","title":{"rendered":"RBI rate cut and my take"},"content":{"rendered":"<p>RBI Governor started the out of turn meeting with Mahatma Gandhi quote \u201cWe may stumble and fall, but shall rise again&#8230;&#8221;\u00a0\u00a0\u00a0\u00a0 to address the concern of liquidity.<\/p>\n<p>Some of the salient features are:<\/p>\n<ul>\n<li>*Repo rate cut by 40 bps to 4 percent, Reverse Repo gets adjusted to 3.35 percent<\/li>\n<li>GDP growth outlook for FY21 seen <strong>in negative territory<\/strong>, some pick up seen in H2FY21<\/li>\n<li>*Moratorium extension for another three months \u2013 total six months<\/li>\n<li>Accumulated interest for moratorium period can be converted into a term loan, doesn&#8217;t have to be repaid immediately after moratorium ends.<\/li>\n<li>Group exposure limit increased to 30 percent from 25 percent<\/li>\n<\/ul>\n<p>Already the SBI 1-3 years FD interest rates are at 5.5 per cent, with today\u2019s rate cut in Repo, further interest rates cuts are in the offing.<\/p>\n<p>So, what happens to economy when interest rates fall continuously.<\/p>\n<p>It clearly shows when the interest rates fall, it helps economy to grow which in turn helps company to post decent profits, the by-product market to move up. Table will help you to understand in detail.<\/p>\n<p><img loading=\"lazy\" class=\"aligncenter wp-image-1255 size-full\" src=\"https:\/\/myassetsconsolidation.com\/blog\/wp-content\/uploads\/2020\/05\/rbi-repo-rate.png\" alt=\"\" width=\"610\" height=\"293\" srcset=\"https:\/\/myassetsconsolidation.com\/blog\/wp-content\/uploads\/2020\/05\/rbi-repo-rate.png 610w, https:\/\/myassetsconsolidation.com\/blog\/wp-content\/uploads\/2020\/05\/rbi-repo-rate-300x144.png 300w, https:\/\/myassetsconsolidation.com\/blog\/wp-content\/uploads\/2020\/05\/rbi-repo-rate-260x125.png 260w, https:\/\/myassetsconsolidation.com\/blog\/wp-content\/uploads\/2020\/05\/rbi-repo-rate-50x24.png 50w, https:\/\/myassetsconsolidation.com\/blog\/wp-content\/uploads\/2020\/05\/rbi-repo-rate-150x72.png 150w, https:\/\/myassetsconsolidation.com\/blog\/wp-content\/uploads\/2020\/05\/rbi-repo-rate-375x180.png 375w\" sizes=\"(max-width: 610px) 100vw, 610px\" \/><\/p>\n<p>&nbsp;<\/p>\n<p><strong>My suggestions to investors<\/strong>: With too many negatives, I suggest you to start SIP immediately and if you have lumpsum invest in liquid fund and route through STP over 9-12 months. When tide changes you will see the portfolio giving high double-digit returns.<\/p>\n<p>\u201c<em>Be fearful when others are greedy, and be greedy only when others are fearful.\u201d- Warren Buffett.<\/em><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>RBI Governor started the out of turn meeting with Mahatma Gandhi quote \u201cWe may stumble and fall, but shall rise<span class=\"excerpt-hellip\"> [\u2026]<\/span><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"yst_prominent_words":[294,328,837,846,847,843,283,832,833,841,838,834,836,835,726,840],"_links":{"self":[{"href":"https:\/\/myassetsconsolidation.com\/blog\/wp-json\/wp\/v2\/posts\/1254"}],"collection":[{"href":"https:\/\/myassetsconsolidation.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/myassetsconsolidation.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/myassetsconsolidation.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/myassetsconsolidation.com\/blog\/wp-json\/wp\/v2\/comments?post=1254"}],"version-history":[{"count":1,"href":"https:\/\/myassetsconsolidation.com\/blog\/wp-json\/wp\/v2\/posts\/1254\/revisions"}],"predecessor-version":[{"id":1256,"href":"https:\/\/myassetsconsolidation.com\/blog\/wp-json\/wp\/v2\/posts\/1254\/revisions\/1256"}],"wp:attachment":[{"href":"https:\/\/myassetsconsolidation.com\/blog\/wp-json\/wp\/v2\/media?parent=1254"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/myassetsconsolidation.com\/blog\/wp-json\/wp\/v2\/categories?post=1254"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/myassetsconsolidation.com\/blog\/wp-json\/wp\/v2\/tags?post=1254"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/myassetsconsolidation.com\/blog\/wp-json\/wp\/v2\/yst_prominent_words?post=1254"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}