
Personal Finance By Hanif
February 7, 2025 at 10:19 AM
*RBI Cut Interest Rates! What Does It Mean?*
Imagine you borrowed ₹100 from a friend and had to return ₹110 after a year. Now, your friend says you only need to return ₹108 instead. Feels good, right?
That’s what happens when RBI reduces the repo rate—the interest rate at which banks borrow money from RBI. Lower rates mean:
✅ Cheaper loans for businesses and people (buying homes, cars, or expanding companies)
✅ More spending & investment → Economy grows
✅ Stock markets may rise as companies get cheaper funds to grow
In simple terms: Lower interest rates make money flow faster, boosting the economy and stock market!