RBI cuts down the Repo Rate from 6.25 to 6.00. It predicts the growth rate for the financial year 2019-20. It also announced that the inflation rate would be between 2.9 and 3.0 during this financial year. It is a very important thing that RBI has lowered Repo Rate continuously last two quarters. It gives Indian Economy a feather to fly. If the purchasing power of Customer would increase, Economy zooms. All these things have been done to increase the purchasing power of countrymen.
As it seems, the Global Economy is suffering a tougher time for the last two quarters. Its effect on the Indian Economy is nothing by now. Economists feel that it would slow down the growth rate of the Indian Economy. Indian Government and RBI have done well to tackle such situation. Indian Government have cut the price of Petroleum and RBI also cuts down Repo Rate by 25 Basic points. It indicates to be a cheaper interest rate.
Banks have cut down the interest rate on types of fixed deposits. Bank Loans would be easy to take because Interest rate lowered so EMI would be cheaper. In this way, people will get loans from Banks at a lower rate. Property investment is also a very good place to find the best returns. Property Rates would be in control. People will get the easy loan on lower rate.
Stock Market Investments like Real Estate, Automobile, and Consumer Goods, etc. would be easy to invest and find higher return. Due to Lower Interest rate, people rush to purchase. Repo rate, Reverse Repo Rate, SLR and CRR are monetary tools by which RBI controls the flow and liquidity of Currency.