Reducing the interest rate will be an important issue in the meeting of the Finance Minister Nirmala Sitharaman on Monday with the bank heads and then in the monetary policy review meeting by the RBI on Wednesday. The experts believe that the RBI will also cut the repo rate to ease interest rates this time too. Governor Shaktikanta Das has reduced the repo rate in all three review meetings of his tenure. However, customers have not benefited from this. This will be the key issue in the meeting of the Finance Minister with the bank heads.
Repo rate has been cut 3 times
The repo rate has been cut three times since January 2019. This reduction has been done in 75 basis points (0.75 percent). However, so far, banks have hardly reduced the rate of a home loan or other loans by 0.20 percent. It is believed that on behalf of the finance minister, government banks will be asked not only to impose more debt, but also to reduce the current rate of interest.
