RBI decides to cut Repo Rate by 25 basis point : It has become a hot topic of RBI cutting repo rate, so in this article we will try to examine this issue from various possible dimensions. Before we proceed lets define repo rate; In laymen term it’s a rate at which RBI lends money to bank for short term borrowing . I used the term laymen because actually RBI signs repurchase agreement with the banks and both the statement are technically same with slight difference. From definition itself it’s clear that a cut in repo rate could imply: 1) Economy is growing much below its speculated potential. 2) Low inflation New governor of RBI, Shaktikant Das, has many time in his speech made it clear that there is no gap in actual and speculated growth of economy. In another words, Indian economy is growing at it’s potential. Regarding inflation, RBI has been instructed to maintain inflation rate of between 2 to 6 % with 4% as mean. At present CPI inflation (Consumer Price Index) is 2...