The Reserve Bank of India has cut down the repo points for the first time in five years by 25 bps. This strategic move is taken to boost the economic growth of the country by improving liquidity. The Monetary Policy Committee (MPC) decided to cut the key rate from 6.5% to 6.25%.
Mr. Sanjay Maholtra, the current Governor of RBI, said that the global economic situation is challenging. However, indicators show signs of resilience in the global economy. And despite the challenges, the Indian economy stands strong. The banking sector is likely to see increased credit demand, while the real estate and automobile industries may experience higher sales due to lower loan interest rates.
