RBI cuts repo rate again by 25 basis to 7.25%. It’s a part of the strategic moves to push economy of India. It will help industries to get more finance as there is a chance that all the commercial banks will make the interest rate lower. Analysts are taking this decision as a part of Namo Government’s new initiative to pull the economic growth.
RBI Cuts Repo Rate :
RBI (Reserve Bank of India) has cut the repo rate for all commercial banks and NBFCs two times within two months. After taking oath as Finance Minister, Arun Jaitley started taking steps to trigger down the interest rate so make more money available for industries to grow.
Rupee soars up as RBI cuts Repo Rate:
Rupee gets stronger as the central bank cuts repo rate and it come upto 61.88 against USD. It’s a sign that foreign investors will take interest to invest in Indian market. Some state level lottery departments like- Kerala Lottery, UP Lottery etc have slashed down their prize amounts from 90 lakhs to 75 lakhs suddenly though this move of RBI has no relation with Kerala Lottery result or UP lottery result.
Make in India and Slash of Repo Rate:
Namo introduced new business idea- make in India, that starts with manufacturing components and parts of any industry with Indian workmanship and raw materials. It will bring down the manufacturing costs. India can make more defence equipments here in India with world class technology but in low price off course. Low cost products will be exported. But to attract these foreign players in India, it has to make the environment business friendly. As the first step to make the Indian business environment more easier to the foreign manufacturers central banks lowered the repo rate so that they can get loans in minimum interest rate.
Though there are many controversies that Narendra Modi and Co, are doing all for the corporates, Indian Chamber of Commerce and FICCI have welcomed the decision RBI to cut repo rate.