RBI decides to keep repo rate unchanged at 4 %

Image Credit
The economic slowdown is going on all over the world. The economic prosperity of almost every country has come to a sudden halt. The list of all these countries includes the United States and many rich countries in Europe. The GDP of each country has gone down. The unemployment rate is rising The situation is prevailing all over the world. And the main reason for this is the pandemic coronavirus.

Image Credit
To save people's lives, the government has seen a complete lockdown for several months in a row. There was a shortage. The landlord did not get the rent and wanted to evict the tenant. In other words, a terrible situation is prevailing all around.

Image Credit
In this situation, all countries are fighting to save their people as well as to keep the country's economy and vigilance. Each country has brought a huge financial budget to fight this epidemic. Each country is spending 10% of its GDP to keep the socio-economic situation balanced.

But a powerful country in Europe, they have shown a lot of foresight. They are helping their people financially so that no one is unemployed. They are helping every business with financially. The government will help everyone to improve their financial situation by 2022. And so Germany will help them. Germany is spending 60% of the total GDP to handle the situation.

India is in the same situation as in other countries. The economy has weakened considerably. The rate of economic prosperity has decreased. India has used 10% of its GDP to handle the situation like other countries. And in the next two to one year, the country's economy will not change much, said RBI Governor Shaktikant Das.

Recently, a six-member monetary policy team met to determine the country's economic policy. After much discussion, Shaktikant Das said the repo rate would remain unchanged this year, at 4%. However, experts predicted that the repo rate could fall by at least 25 basis points.

What is a repo point?

𝚃𝚑𝚎 𝚛𝚎𝚙𝚘 𝚙𝚘𝚒𝚗𝚝 𝚒𝚜 𝚝𝚑𝚎 𝚛𝚊𝚝𝚎 𝚊𝚝 𝚠𝚑𝚒𝚌𝚑 𝚝𝚑𝚎 𝚁𝙱𝙸 𝚕𝚎𝚗𝚍𝚜 𝚝𝚘 𝚌𝚘𝚖𝚖𝚎𝚛𝚌𝚒𝚊𝚕 𝚋𝚊𝚗𝚔𝚜 𝚒𝚗 𝚝𝚑𝚎 𝚌𝚘𝚞𝚗𝚝𝚛𝚢. 𝚃𝚑𝚒𝚜 𝚖𝚎𝚊𝚗𝚜 𝚝𝚑𝚊𝚝 𝚝𝚑𝚎 𝚕𝚎𝚗𝚍𝚒𝚗𝚐 𝚛𝚊𝚝𝚎 𝚠𝚒𝚕𝚕 𝚛𝚎𝚖𝚊𝚒𝚗 𝚊𝚝 𝟺% 𝚝𝚑𝚒𝚜 𝚢𝚎𝚊𝚛.

𝙴𝚟𝚎𝚗 𝚝𝚑𝚎 𝚛𝚎𝚟𝚎𝚛𝚜𝚎 𝚛𝚎𝚙𝚘 𝚙𝚘𝚒𝚗𝚝 𝚠𝚒𝚕𝚕 𝚛𝚎𝚖𝚊𝚒𝚗 𝚞𝚗𝚌𝚑𝚊𝚗𝚐𝚎𝚍. 𝚃𝚑𝚎 𝚛𝚎𝚟𝚎𝚛𝚜𝚎 𝚛𝚎𝚙𝚘 𝚙𝚘𝚒𝚗𝚝 𝚒𝚜 𝟹.𝟽𝟻%.
𝚃𝚑𝚎 𝚛𝚎𝚟𝚎𝚛𝚜𝚎 𝚛𝚎𝚙𝚘 𝚙𝚘𝚒𝚗𝚝 𝚒𝚜 𝚝𝚑𝚎 𝚛𝚊𝚝𝚎 𝚊𝚝 𝚠𝚑𝚒𝚌𝚑 𝚝𝚑𝚎 𝚁𝙱𝙸 𝚋𝚘𝚛𝚛𝚘𝚠𝚜.

So only time will tell how reasonable it is to keep the repo point unchanged during this crisis in the country.