In a major decision to boost the economy government has decided to cut the repo rate by 25 Bps. Repo rate has been cut to boost the growth while keeping the policy stance moving. Now the repo rate is at 5.15%.
The government is hopeful that their decision to cut the repo rate will be going to boost the economy further to bring enhancement in GDP of the country which showed decline to 7% to 5% in the quarter.
By the change in repo rate it is expected that the economy is going to boost further to 6.1% to 6.5%. Even if the slow down will continue but this stand in the cut of repo rate will be strengthening the economy further.