how will the repo rate cut affect the economy
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Consumers will borrow more from banks thus stabilizing the inflation. A decline in the repo rate can lead to the banks bringing down their lending rate. This can prove to be beneficial for retail loan borrowers. However, to bring down the loan EMIs, the lender has to reduce its base lending rate.
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The reduction in the repo rate means that industries may be able to get loans at cheaper interest rates from lenders. This is likely to result in commodities becoming cheaper due to lower interest costs, ultimately benefitting you, the end consumer, again.
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