EMIs to come down, as RBI announces unscheduled rate cut

New Delhi, Jan 15: Monthly instalments on auto, home and consumer durable loans may finally come down, as the apex bank in a surprise move cut key lending rates. The unscheduled rate cut served early Thursday morning led Indian Inc. to cheer the move and stock markets to rally. The industry which is reeling under an economic slowdown coupled with high fuel and interest rate costs said that it expect more such moves in the coming month to kick-start the investments and buying cycle. The much awaited reduction in lending rates also fulfilled Reserve Bank of India (RBI) Raghuram Rajan's promise of an 'out-of-turn' rate cut as and when inflation eases. Thursday move which came as a surprise broke away from the standard RBI practice of announcing the lending rates every two months in a financial year. The announcement, though anticipated, was expected to be made at the next monetary policy review meeting scheduled for Feb 3. Now, the industry is clamouring for more rate cut in the Feb 3 meeting.