RBI Cuts Repo Rate by 25 bps to 6.25% Understanding Repo Rate and its impact in simple words🔥⬇️ Bookmark it 🔖 What is Repo Rate? 💰📊 The rate at which the central bank (RBI) lends money to banks. Decrease in Repo Rate: 🏦📉 Lower rate = banks can borrow cheaper money from the RBI. Impact on Economy: 1.Lower Borrowing Costs: Banks: Can borrow cheaper, which may lower loan rates 💵. Consumers: Cheaper loans = lower EMIs, more borrowing, and spending 💳🏡🚗. 2.Economic Growth 📈: More borrowing = more investment, job creation, and growth 🌱. 3.Inflation Control 🔥: Lower repo rate can stimulate the economy if inflation is under control, but it can worsen inflation if it’s already high. 4.Stock Market 📊: Cheaper borrowing = more investment, possibly leading to a bullish market 📈💹. 5.Currency Value 💱: May weaken the INR short-term, but could attract more foreign investment later 💵🌍. 6.Savings vs. Spending 💸: Lower rates = less savings, more spending 🛍️.