The Reserve bank of India (RBI) is sending feelers of a decline in interest rates with a 1% reduction in key benchmark rates on Saturday.  The repo rate now stands at 6.5% and the reverse repo rate has been reduced to 5% giving room for increased consumption and growth.

Will this action from RBI create the necessary environment for banks to cut retail lending rates ?

If the Personal Loan Rates in India and Home Loan Rates in India do soften, it could lead to a sustained increase in demand and possibly fuel economic growth.

Click Here  For The Details of The Rate Cut on Economic Times.