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RBI cuts repo rate by 25 basis points to 6.25%, a first in 5 years!
What does this mean for you, your loans, and the economy?
Let’s break it down in simple terms🧵👇 x.com
RBI cuts repo rate by 25 basis points to 6.25%, a first in 5 years!
What does this mean for you, your loans, and the economy?
Let’s break it down in simple terms🧵👇 x.com
2/7
The RBI’s Monetary Policy Committee (MPC) just cut the repo rate by 25 basis points to 6.25%. This is the first rate cut in five years!
But what is repo rate? 🤔
It’s the interest rate at which the RBI lends money to banks. When this rate goes down, borrowing becomes cheaper, making loans more affordable.
The RBI’s Monetary Policy Committee (MPC) just cut the repo rate by 25 basis points to 6.25%. This is the first rate cut in five years!
But what is repo rate? 🤔
It’s the interest rate at which the RBI lends money to banks. When this rate goes down, borrowing becomes cheaper, making loans more affordable.
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Who decides this?
The Monetary Policy Committee (MPC)—a 6-member team at RBI that sets interest rates to manage inflation and growth.
Their job? Keep prices stable while ensuring economic growth.
Who decides this?
The Monetary Policy Committee (MPC)—a 6-member team at RBI that sets interest rates to manage inflation and growth.
Their job? Keep prices stable while ensuring economic growth.
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Why did RBI cut the rate now?
- The economy is slowing down
- Inflation is somewhat under control
- Lowering the repo rate makes borrowing cheaper, encouraging spending & investment 📊🏗️
Why did RBI cut the rate now?
- The economy is slowing down
- Inflation is somewhat under control
- Lowering the repo rate makes borrowing cheaper, encouraging spending & investment 📊🏗️
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What does this mean for you?
✅ Lower interest rates on home, car & personal loans
✅ Lower EMIs for borrowers
❌ But also—lower returns on fixed deposits (FDs)
What does this mean for you?
✅ Lower interest rates on home, car & personal loans
✅ Lower EMIs for borrowers
❌ But also—lower returns on fixed deposits (FDs)
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GDP forecast?
RBI estimates India’s GDP to grow at 6.7% in the next fiscal year.
Meanwhile, inflation is expected to be around 4.2%-4.8%.
GDP forecast?
RBI estimates India’s GDP to grow at 6.7% in the next fiscal year.
Meanwhile, inflation is expected to be around 4.2%-4.8%.
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All of this is happening while global uncertainty looms—trade wars, tariff tensions, and economic slowdowns worldwide. 🌍📉
TL;DR: Cheaper loans, slightly lower FD returns, and an RBI that wants to boost the economy without letting inflation go wild.
What do you think—good move or bad move? Let’s discuss! 👇
All of this is happening while global uncertainty looms—trade wars, tariff tensions, and economic slowdowns worldwide. 🌍📉
TL;DR: Cheaper loans, slightly lower FD returns, and an RBI that wants to boost the economy without letting inflation go wild.
What do you think—good move or bad move? Let’s discuss! 👇
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