RBI uses monetary policy to curb inflation and different measures are taken for this. Repo rate is the rate at which RBI gives money to banks and it also determine the interest rates of different bank.
I feel that this is the right time for the interest rate cut to implement because commodity prices have fallen,inflation is down,fiscal and current account deficits are down and balance of payment is in favour of india due to affordable imports of oil and related product.Oil price is expected to remain in lower bound range for certain period.
When Dr Raghuram Rajan was appointed 23rd governer of RBI,india was in critical condition due to effect of many scam including 2G,Supreme court decision to cancel all the spectrum allocation.His brilliant decision and calculated gamble did the magic and changed the scenario.
India is the nation of Diversity and balanced approach need to be implemented in india.Mr Narendra Modi led Indian Government has taken many step for all round development.Industrial and Commercial sector are suffering from higher interest rates and need immediate attention.NPA of many banks are increasing.
To avoid imminent crisis RBI should immediately reduce the rate.
— From Creditfina’s Social Marketing Division