On Wednesday, the Reserve Bank of India decided to cut the repo rate by 35 basis points. Repo rate refers to the rate at which the Reserve Bank provides loans to working banks. This is the fourth consecutive time the central bank has
Repo rate is cut. The repo rate currently stands at 5.40%, the lowest level since April 2010.
The reduction is usually done by the RBI up to 25 basis points, but this time the central bank has given a big signal by making more reduction. With the announcement of RBI, the country's largest bank SBI has given the benefit of rate cut to the customers. However, there will be losses to those who were relying on the interest from fixed deposits. Know, what effect this decision of RBI will have on the economy…
Bad news for the economy: The Reserve Bank of India has lowered its GDP growth forecast from 7% to 6.9% in its June policy. Earlier, the central bank had raised 7.2% to 7% in April. It is clear from RBI's estimates that the economy is going through a recession. The result of this slowdown in the economy is that RBI has had to rate 4 times in a row. Since February, the central bank has cut rates by 1.1 per cent. It is clear from cutting the rate so much that the RBI is worried about the slowdown coming in the economy.
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