RBI may cut repo rate again—here's what that means for you
The Reserve Bank of India (RBI) is likely to lower its main interest rate—the repo rate—to 5.25% this December.
This would be the fourth cut since February, thanks to super-low inflation and the need to support growth.
If it happens, it could make loans a bit cheaper, but might also mean less interest for savers.
Why is this happening?
Inflation dropped to just 0.25% in October—the lowest in over a decade—while the economy is still growing at more than 7%.
The RBI hopes cutting rates will encourage people and businesses to borrow and spend more, though banks might earn less from loans, and some savers could look for better returns elsewhere.
What's next?
Even with global uncertainties like trade tensions, the RBI feels confident inflation will settle near its 4% target by 2027.
Experts say this move is part of a bigger plan to keep the economy stable as things change both in India and around the world.