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Recently the Monetary Policy Committee of RBI has cut down the repo rate by 25 basis points. With cut down in repo rate what will be the effect on inflation?
A: Inflation will increase
B: Inflation will decrease
C: Inflation has nothing to do with inflation
D: None of the above
Correct answer is 'A'. Can you explain this answer?
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Recently the Monetary Policy Committee of RBI has cut down the repo ra...
Increase in Repo rate is used as monetary policy to control inflation in a economy. One of the main factor for increase in inflation is Increase in the money supply in the economy. 1.Increase in spending power :- As more money is being circulated in the economy peoples spending power increases.
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Recently the Monetary Policy Committee of RBI has cut down the repo ra...
Some of the upside risks to inflation such as high core inflation (excluding food and fuel prices), poor rains and adverse impact from the rollout of the goods and services tax (GST) have not materialized, opening up space for monetary policy accommodation as noted by monetary policy committee (MPC).
However, that the trajectory of inflation in the baseline projection is expected to rise from current lows, the MPC decided to keep the policy stance neutral and to watch incoming data.
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Recently the Monetary Policy Committee of RBI has cut down the repo ra...
Repo rate is the rate at which commercial banks can avail loans from RBI in return of repurchasing certificates. When repo rate is high, the banks are required to pay more interest while borrowing from RBI. Similarly, decrease in repo rate makes loans cheaper for commercial banks. Thus, when repo rate is low, banks have more money available with them to lend to people. This in turn allows banks to give out cheaper loans. Thus low repo rate leads to increased money supply in the economy. Hence, there is increase in inflation in the economy. Thus, option A is correct.
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Recently the Monetary Policy Committee of RBI has cut down the repo rate by 25 basis points. With cut down in repo rate what will be the effect on inflation?A: Inflation will increaseB: Inflation will decreaseC: Inflation has nothing to do with inflationD: None of the aboveCorrect answer is 'A'. Can you explain this answer?
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Recently the Monetary Policy Committee of RBI has cut down the repo rate by 25 basis points. With cut down in repo rate what will be the effect on inflation?A: Inflation will increaseB: Inflation will decreaseC: Inflation has nothing to do with inflationD: None of the aboveCorrect answer is 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Recently the Monetary Policy Committee of RBI has cut down the repo rate by 25 basis points. With cut down in repo rate what will be the effect on inflation?A: Inflation will increaseB: Inflation will decreaseC: Inflation has nothing to do with inflationD: None of the aboveCorrect answer is 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Recently the Monetary Policy Committee of RBI has cut down the repo rate by 25 basis points. With cut down in repo rate what will be the effect on inflation?A: Inflation will increaseB: Inflation will decreaseC: Inflation has nothing to do with inflationD: None of the aboveCorrect answer is 'A'. Can you explain this answer?.
Recently the Monetary Policy Committee of RBI has cut down the repo rate by 25 basis points. With cut down in repo rate what will be the effect on inflation?A: Inflation will increaseB: Inflation will decreaseC: Inflation has nothing to do with inflationD: None of the aboveCorrect answer is 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Recently the Monetary Policy Committee of RBI has cut down the repo rate by 25 basis points. With cut down in repo rate what will be the effect on inflation?A: Inflation will increaseB: Inflation will decreaseC: Inflation has nothing to do with inflationD: None of the aboveCorrect answer is 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Recently the Monetary Policy Committee of RBI has cut down the repo rate by 25 basis points. With cut down in repo rate what will be the effect on inflation?A: Inflation will increaseB: Inflation will decreaseC: Inflation has nothing to do with inflationD: None of the aboveCorrect answer is 'A'. Can you explain this answer?.
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Recently the Monetary Policy Committee of RBI has cut down the repo rate by 25 basis points. With cut down in repo rate what will be the effect on inflation?A: Inflation will increaseB: Inflation will decreaseC: Inflation has nothing to do with inflationD: None of the aboveCorrect answer is 'A'. Can you explain this answer?, a detailed solution for Recently the Monetary Policy Committee of RBI has cut down the repo rate by 25 basis points. With cut down in repo rate what will be the effect on inflation?A: Inflation will increaseB: Inflation will decreaseC: Inflation has nothing to do with inflationD: None of the aboveCorrect answer is 'A'. Can you explain this answer? has been provided alongside types of Recently the Monetary Policy Committee of RBI has cut down the repo rate by 25 basis points. With cut down in repo rate what will be the effect on inflation?A: Inflation will increaseB: Inflation will decreaseC: Inflation has nothing to do with inflationD: None of the aboveCorrect answer is 'A'. Can you explain this answer? theory, EduRev gives you an
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