The Reserve Bank of India has cut the Repo Rate by 0.25 per cent with immediate effect which could be a huge relief to the money lenders. This is RBI's first cut since 2013 and it is also a surprise move as there was no cut from the Central Bank even though the inflation was dropping down. Global oil prices  also coming down to $45 a barrel is one of the factor.

Following the RBI cut down, the Stock Markets are trading with massive gains. RBI released a statement which said, it could cut interest rates further should inflation continue to ease, while it would also monitor the government's progress on fiscal consolidation. However, RBI's Policy Review which is slated on February 3 should be looked at.