InvestorQ : What is the idea of RBI reducing rates by 75 bps in one stroke?
Crowny Pinto made post

What is the idea of RBI reducing rates by 75 bps in one stroke?

Answer
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7 months ago


The idea is to ensure that liquidity is sufficiently available in the market. Also lower rates will mean that banks will pass on these lower rates to borrowers and that will benefit in the form of lower borrowing costs. This is the sharpest single rate cut the RBI has undertake and is in line what other economies have done.