New Delhi: The Centre will adopt cheaper loan as a weapon to tackle the slowdown in the country's economy. The lowering of interest rate will be an important issue at the Monetary Policy Review meeting of the Reserve Bank of India (RBI) on Wednesday following Finance Minister Nirmala Seemaman's meeting with bank chiefs on Monday.

Most experts believe that RBI will also reduce the repo rate this time to ease the interest rate. The repo rate (based on this rate is fixed by banks such as home loans, auto loan loans) has been cut three times since January 2019.

The reduction was a total of 75 basis points (0.75 percent). The meeting is expected to encourage the Finance Minister to not only disburse more loans to public sector banks but also to further reduce the current rate of credit. Finance Ministry officials believe that the decline in lending rates by 0.25 basis points is a clear case.

Finance Minister Sitharaman also said in a recent interview, "To be clear, I wish interest rates were cut. It will prove to be very good for the economy of the country. "There is a lot of pressure on the government on the economy that is still falling.

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