India’s repo rate cut cycle to settle at 4.75%, total 135 bps rate cut effected this calendar year
Shifting the benchmark and reducing borrowing costs will improve the transmission of rate cuts
There is a discentive on savings in bank deposits while the depositors run the risk of negative return.
Repo rate is the key indicator of stability or instability in the lending mechanism of banks.
The Reserve Bank of India (RBI) reduced repo rate by 25 basis points to 6.25 per cent on Thursday.