RBI's Repo Rate Lowest Since 2010
The RBI’s monetary policy committee (MPC) voted unanimously voted to bring the Repo Rate down from 6% to 5.75%.
Repo rate is the price commercial banks pay to the RBI for short term funds. The RBI’s monetary policy committee (MPC) voted unanimously voted to bring the Repo Rate down. Earlier it was 6% and now it has been reduced to 5.75%. This is the lowest since September 2010.
RBI governor Shaktikanta Das announced this decision and said that, the potential to grow has weakened a lot. Investment activities in different sectors has also reduced. He also said that the country’s private consumption has not grown much either. This is why the RBI decided to reduce the Repo Rate. The decision by the RBI will make mortgages, auto loans and other borrowings cheaper.
Another reason for the decrease is the BJP’s victory in the Lok Sabha Election and the people’s faith that they will carry out their financial responsibilities of the country very well.