After the savings celebration of GST 2.0, the middle class of the country can get another major gift before Diwali and Dussehra. The Reserve Bank may cut interest rate by 0.25 per cent. This can make your home loan, bike loan or personal loan cheaper. The Reserve Bank has already cut the interest rate by 1 per cent this year. The next meeting of monetary policy review will be held between September 29 to October 1. This possibility is mentioned in SBI’s research report. The report states that it is appropriate and rational to cut interest rates in September. For this, the RBI can take a decision after deliberate talks. After June, interest rates are more likely to cut.
The Reserve Bank of India (RBI) started the process of cutting interest rates in February this year. On February 7, 2025, RBI cut the interest rate by 25 basis points to 6.5% to 6.25%. The Monetary Policy Committee cut 25 and cut 25 basis points on 9 April and reduced 50 basis points on 6 June 2025.
Siddharth Khemka, the research head of the research-wealth of Motilal Oswal Financial Services Limited, said, “The Indian stock market is likely to continue gradually. This week, cuts in Goods and Services Tax (GST), cuts in Goods and Services Tax (GST), the US central bank cut interest rates cuts and US-India trade negotiations and the hopes of improving the perception on US-India trade talks. In, the continuous participation of Mutual Fund and SIP is expected to generate new equity investment of $ 50-70 billion in India. Despite the notion of foreign investors at the bottom of many years, India is the most strong structural development story in global markets.
GST 2.0 is giving confidence
The number of tax slabs under the GST structure has been reduced from four (5 percent, 12 percent, 18 percent and 28 percent) to two (5 percent and 18 percent). In addition, the government has reduced tax zero on many such items, which were earlier levied 5, 12 or 18 percent tax. At the same time, 40 percent tax has been determined on luxury items.
Getting cheap: Under GST reforms, ultra-high temperature (UHT) milk, cheese, chhena (east-pack and label), pizza bread, khakhara, chapati or roti, paratha, kulcha and other bread have been reduced to zero from Monday, which had the first 5 percent GST.
Apart from this, the government has reduced GST from 28 percent to 18 percent on AC and refrigerator etc. Also, taxes on vehicles have been reduced. GST has now been reduced from 28 percent to 18 percent on a 350 cc and less capacity bike.
Products on which tax zero: Medical grade oxygen and stationery items (sharpener, copier, notebooks, pencils and other products) will also be reduced from 12 percent to zero. Also, the tax on personal health and life insurance has also been reduced to zero, which was earlier 18 percent.
The entire 18% GST on health insurance and life insurance has been abolished. This means that now personal health and life insurance policies have become cheaper than before.
