RBI to cut repo rate again. The new rate is 5.40%. The rate for the first week of June is 5.7.
The decision was taken at a meeting of the six-member Finance Committee headed by RBI Governor Shaktikanta Das. This is the lowest rate in nine years. Four favoring a reduction of 0.35%, two saying a reduction of 0.25%.This is the fourth time this year that repo rates have come down. RBI cuts rates in February and April.. Experts say that interest rates on loans will come down as repo rates fall. Repo rate is the interest charged on short-term loans taken by RBI from commercial banks. Meanwhile, the GDP growth rate for the current financial year (GDP) is 7% to 6.9%.Shaktikanta Das, Governor, RBI said.
5.8 - 6.6% in the first quarter of 2019-2020 and 7.3 – 7.5 in the second quarter.
