Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Yet Another RBI Rate Cut May Not Result in Lower Lending Rates
Dec 5, 2019

The talking heads on TV and investors around you may be talking about India's low GDP growth. Their focus will now shift to whether the RBI's rate cut will translate into better economic activity in the near term.

Like this chart shows, RBI rate cuts have always had a big gap with bank lending rates. It will be a while before lower lending rates stoke the economy.

Therefore, hoping for an immediate revival in the economy is futile. The RBI has no magic wand to do this.

Rather look for stocks that can outperform irrespective of the RBI policy.

Data Source: RBI

This Chart Of The Day was published in The 5 Minute WrapUp - Stocks that Can Outperform No Matter what the RBI Does Today

Equitymaster requests your view! Post a comment on "Yet Another RBI Rate Cut May Not Result in Lower Lending Rates". Click here!


Our Most Popular Charts

Get the Indian Stock Market's
Most Profitable Ideas

How To Beat Sensex Guide 2020
Get our special report, How to Beat Sensex Nearly 3X Now!
We will never sell or rent your email id.
Please read our Terms