Repo Rate Cut Welcomed By Textile Industry

To begin with, Repo Rate is precisely the rate at which the Central Bank of the country lends money to all commercial banks during the event of shortage of funds.

In a recent financial move the RBI Governor, Dr. Raghuram Rajan announced a cutback on the current repo rate from 7.25 percent to 6.75 percent, which was brought into effect immediately on 29^th September, 2015. This repo rate deduction of 50 basis points has been more than welcomed by the textile industry of the country, simply for the reason that this cut will majorly benefit capital-intensive industries.