Repo Rate

Article Title: Repo Rate

16-04-2025

Indian Economy Current Affairs Analysis

The Reserve Bank of India (RBI) reduced the repo rate by 25 basis points, bringing it down to 6%.

About Repo Rate

iThe repo rate is the interest rate at which the RBI lends short-term funds to commercial banks against government securities.

iiIt serves as a primary tool for the RBI to regulate liquidity, control inflation, and influence overall economic activity.

iiiBy adjusting the repo rate, RBI can either encourage banks to borrow more (by lowering the rate) or discourage borrowing (by raising the rate), thus influencing the money supply in the economy.

Impact of RBI Repo Rate Cut

iLower Borrowing Costs

iiFixed Deposit (FD) Interest Rates

iiiEnhanced Credit Flow

ivBoost to Real Estate and Infrastructure

vSupport Amid Global Challenges

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