Daily Learnings... • 1y
About Rates in the market... To strike a balance in market, the RBI has to consider all economic factors and carefully set the key rates. Any imbalance in these rates can lead to economic chaos: 1)Repo Rate:-The rate at which RBI lends money to other banks is called the Repo Rate.If it is high,cost of borrowing is high,leading to slow economic growth. 2)Reverse Repo Rate:-The rate at which RBI borrows money from bank,increase in reverse repo rate is not good for the economy. 3)Cash reserve ratio (CRR):- Every bank must maintain funds with RBI. The amount that they maintain is dependent on the CRR. If CRR increases, more money is sucked out of the mainstream economy, which is not good for the economy. Regular meetings are conducted to revies the economic situation and decide upon these key rates.
Pursuing CMA. Talks... • 5m
The Reserve Bank of India (RBI) reduced the repo rate by 25 basis points to 6.25%, the first rate cut in nearly five years. What is the repo rate? It’s the rate at which the RBI lends money to commercial banks. A lower repo rate means cheaper loans
See MoreFounder And CEO Of F... • 8m
"RBI Expected to Cut Repo Rate by 25 Basis Points to 6.25% in December Amid Concerns Over Volatile Food Prices" "RBI Likely to Cut Key Policy Rate by 25 Basis Points to 6.25% in December as Inflation Expected to Ease, Aiming to Boost Economic Growth
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