In a move aimed at stimulating economic growth, the Reserve Bank of India (RBI) has reduced the repo rate by 0.25% to 6.25%. This is the first rate cut in five years, signaling a shift toward a more accommodative monetary policy.
👉🏼 𝙄𝙢𝙥𝙖𝙘𝙩 𝙤𝙣 𝘽𝙤𝙧𝙧𝙤𝙬𝙚𝙧𝙨 𝙖𝙣𝙙 𝙀𝙘𝙤𝙣𝙤𝙢𝙞𝙘 𝙂𝙧𝙤𝙬𝙩𝙝
The rate cut is expected to lower home loan EMIs, auto loans, and personal loans, providing financial relief to borrowers. With moderating inflation, especially in food prices, the RBI had the flexibility to reduce rates. This move could encourage consumer spending and business investment.
👉🏼 𝙃𝙞𝙨𝙩𝙤𝙧𝙞𝙘𝙖𝙡 𝘾𝙤𝙣𝙩𝙚𝙭𝙩
The last time the RBI lowered the repo rate was in May 2020, during the Covid-19 pandemic. This cut was larger, reducing the rate by 0.40% to support businesses and individuals during the lockdown. The current rate cut is more strategic, reflecting economic recovery and controlled inflation.
👉🏼 𝘽𝙚𝙮𝙤𝙣𝙙 𝙩𝙝𝙚 𝙍𝙚𝙥𝙤 𝙍𝙖𝙩𝙚
While the repo rate cut is helpful, some experts argue that more is needed to address liquidity issues in the economy. Measures such as reducing the Cash Reserve Ratio (CRR) or conducting open market operations might be necessary to ensure smoother credit flow and financial stability.
👉🏼 𝙏𝙝𝙚 𝙇𝙤𝙜𝙞𝙘𝙖𝙡 𝙄𝙣𝙙𝙞𝙖𝙣’𝙨 𝙋𝙚𝙧𝙨𝙥𝙚𝙘𝙩𝙞𝙫𝙚
Though the repo rate cut is a positive step, it might not be enough to address all economic challenges. Financial experts suggest that addressing liquidity concerns and implementing structural reforms could be essential for sustained growth and financial relief.
⚡ What other measures do you think the RBI should take to support the economy?
The Logical Indian
In a move aimed at stimulating economic growth, the Reserve Bank of India (RBI) has reduced the repo rate by 0.25% to 6.25%. This is the first rate cut in five years, signaling a shift toward a more accommodative monetary policy.
👉🏼 𝙄𝙢𝙥𝙖𝙘𝙩 𝙤𝙣 𝘽𝙤𝙧𝙧𝙤𝙬𝙚𝙧𝙨 𝙖𝙣𝙙 𝙀𝙘𝙤𝙣𝙤𝙢𝙞𝙘 𝙂𝙧𝙤𝙬𝙩𝙝
The rate cut is expected to lower home loan EMIs, auto loans, and personal loans, providing financial relief to borrowers. With moderating inflation, especially in food prices, the RBI had the flexibility to reduce rates. This move could encourage consumer spending and business investment.
👉🏼 𝙃𝙞𝙨𝙩𝙤𝙧𝙞𝙘𝙖𝙡 𝘾𝙤𝙣𝙩𝙚𝙭𝙩
The last time the RBI lowered the repo rate was in May 2020, during the Covid-19 pandemic. This cut was larger, reducing the rate by 0.40% to support businesses and individuals during the lockdown. The current rate cut is more strategic, reflecting economic recovery and controlled inflation.
👉🏼 𝘽𝙚𝙮𝙤𝙣𝙙 𝙩𝙝𝙚 𝙍𝙚𝙥𝙤 𝙍𝙖𝙩𝙚
While the repo rate cut is helpful, some experts argue that more is needed to address liquidity issues in the economy. Measures such as reducing the Cash Reserve Ratio (CRR) or conducting open market operations might be necessary to ensure smoother credit flow and financial stability.
👉🏼 𝙏𝙝𝙚 𝙇𝙤𝙜𝙞𝙘𝙖𝙡 𝙄𝙣𝙙𝙞𝙖𝙣’𝙨 𝙋𝙚𝙧𝙨𝙥𝙚𝙘𝙩𝙞𝙫𝙚
Though the repo rate cut is a positive step, it might not be enough to address all economic challenges. Financial experts suggest that addressing liquidity concerns and implementing structural reforms could be essential for sustained growth and financial relief.
⚡ What other measures do you think the RBI should take to support the economy?
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10 months ago | [YT] | 3