Mumbai: significant reduction at the loan level on private housing and augur commercial real estate sector well for the economy, because these segments are also employment, the Governor of RBI Shaktikanta Das said on Friday.
While announcing the review of the third bi-monthly monetary policy, he said, the transmission of interest rates has increased.
“The efficacy of RBI’s monetary policy measures is reflected in a significant increase in transmission during the current easing cycle.
Repo level reduction of 250 basis points since February 2019, has resulted in a cumulative decline of 217 basis points in weighted average lending interest rates (WALR) On fresh rupee loans, “he said.
The governor also said that the reduction of loan interest rates has reduced the burden of the household.
“The cost of domestic loans has subsided, including interest rates of market instruments such as corporate bonds, debts, CPS, CDs and T bills.” In the credit market, transmission to loan interest rates has been stronger for MSMEs, housing and large industries.
The low interest rate regime has also helped the household sector reduce the burden of loan services, “he said.
Significant reduction in interest rates for private housing loans and loans to the Augur commercial real estate sector well for the economy, because these sectors have a backward and advanced linkage Extensive and intensive employment, he added.
Regarding the shift from Libor as a benchmark for export credit, the Governor said the transition from London Interbank offering rates (LIBOR) is an important event to challenge certain banks and financial systems.
Bank reserves have been involved with banks and banks The market body to proactively take steps and the central bank has also issued an advisor to ensure a smooth transition for regulated entities and financial markets.
In this context, it has been decided to change guidelines related to export credit in foreign currency and counter restructuring k derivatives, he said.
“Banks will be allowed to extend export credit in foreign currencies using other alternative reference levels that are widely accepted in the currency concerned.” Because changes in the reference level of LIBOR is the “Force Majeure” event, the Bank is also suggested that changes in the level of reference From benchmarks related to LIBOR / LIBOR to alternative reference levels will not be treated as restructuring, “he said.
Pieces of tariffs on augurs housing loans well for the economy: RBI Governor
