The Reserve Bank of India (RBI) may cut the repo rate again in the October review meeting. RBI Governor Shaktikanta Das indicated this. Das said that the government has limited opportunities to support economic development, but the inflation policy may help the Monetary Policy Committee to reduce interest rates further due to lower inflation. The steps of the government to increase growth are mostly administrative level and they take financial vigilance.
The Reserve Bank of India (RBI) may cut the repo rate
He said that in the coming days the government can make more such announcements that do not affect the balance sheet. GDP growth declined to five per cent in April-June. This is the lowest quarterly growth in the past year. The RBI has cut the key interest rate repo rate by 1.10 per cent since January. If this happens in the policy review of October, it will be the fifth consecutive time. Repo rate is the rate at which RBI lends to banks. Due to this reduction, banks get cheaper loans. In such a situation, the pressure on them to reduce interest rates increases and the loan is expected to be cheap for the common man.