RBI has again reduced the Repo rateReserve Bank of India (RBI) has again reduced the Repo rate yesterday. The RBI Governor, Mr. Urjit Patel has announced a cut of Repo rate by 25 basis points. After the reduction of Repo rate, the banks will have to cut down the interest rate. This will help in controlling inflation. The reduction in Repo rate will also bring cheers to the the home loan takers, because they will get home loan at a much reduced rate.
On the other hand, the life of the retired people who depend on the interest of their retirement savings will find the going more tough. In fact, during the last five years, the RBI has been reducing interest rate bringing cheers to the loan-takers, but causing difficulty for the retired people. Now time has come to give a serious thinking about the welfare of senior citizens in the interest cut regime.