HT Explains | Decoding the unexpected RBI rate cut

The Reserve Bank of India (RBI) on Tuesday cut its key lending rate--the repo rate--by 0.50 percentage points to 6.75%. But what does this mean for the investment climate and how does it affect the consumers? Apart from setting the stage for lower loan rates for consumers ahead of the festival season, the cheaper bank capital for companies will definitely aid investment.

This is the fourth rate cut by RBI since January that signals a definitive change in RBI's stance from steadfast focus on controlling prices to hand-holding growth.