Repo Rate Cut & Its Aftermath
Apropos ‘Game, Set and Match To…?’ by Mythili Bhusnurmath (Apr 4), it is expected that the Fed will not immediately raise the rate as it was calibrated earlier. All over the world, commodity prices, employment data and industrial production are not recovering as per expectations. This provides space to the RBI governor to cut the repo rate today in a bid to revive the economy. The only question is by 25 or by 50 basis points. But is the common man ready to accept lower interest rates on bank deposits, which will be an unavoidable outcome of the rate cut?