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Repo Rate

The repo rate is the interest rate at which the central bank lends money to commercial banks. It influences borrowing costs in the economy. A higher repo rate makes loans more expensive. This can reduce inflation. Conversely, a lower rate encourages borrowing and spending. The repo rate is a key tool for monetary policy. It impacts economic growth and stability.

Why Very Low Inflation Worries RBI

India’s recent macroeconomic picture presents an apparent paradox. Even as strong growth and subdued prices prompted the Monetary Policy Committee (MPC) to cut the repo rate by 25...

 December 22, 2025

RBI Considers Cash Reserve Ratio Cut

The Reserve Bank of India (RBI) is currently reviewing its monetary policy. This three-day review began on December 4, 2024. Analysts predict that the repo rate will remain...

 December 5, 2024

Stock Market Decline and RBI’s Dilemma

India's stock market has experienced a notable decline, with an 8% drop from its peak in late September. This downturn has prompted concerns among investors, particularly foreign institutional...

 November 6, 2024

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