Why RBI Must Cut Rates Tomorrow? 6 Things To Know
Likely To Receive Corporate Investment:
In the hour of this current economic scenario, the repo rate cut and government spending are likely to revive corporate investments in the infrastructure space and is likely to trigger credit boost. It is also expected to come as a booster for capital-intensive sectors that have been deferring investments due to high costs and low capacity utilization.
Monsoon:
Monsoon has been good so far and the impact on farm production is yet to be awaited. The monsoon deficiency has been reducing though full impact that would be only after October month this year. The RBI’s challenge is not just about cutting base rate, but also the banking system should make interest rate much more attractive for investment so that it will lure in investors.
Read More: Foreign Investors Get Relief From Controversial MAT
