Today RBI will review credit policy . RBI’s six-member Monetary Policy Committee (MPC) is meeting second time after demonetization . Market is expecting 25 basis points cut in repo rate . Repo rate is short form of repurchase rate .It is also known as short term lending rate. RBI lends money to commercial bank as per this rate . Low repo rate is not only beneficiary to commercial bank but also to industry . Commercial banks can lend money at low rate to industry if they get benefited from RBI . In last meeting MPC had left repo rate unchanged to 6.25 % . The decision was taken considering some internal as well as external factors . The main external factors which were considered by MPC were possible rate hike by US fed and rising oil price as well as US dollar . At present US federal reserve has preferred pause for rate hike but concern of rising oil price has not gone away . Rising oil prices is a challenge to India’s growth. Economic Survey presented in Parl
The Wealth Building Platform