3 things you must know about the Repo Rate

3 things you must know about the Repo Rate

Earlier this week, RBI conducted an off-cycle MPC (Monetary Policy Committee) meet and announced a 40 basis points (0.4%) repo rate hike on Wednesday to calm inflationary pressures. The hike is the first since August 2018, and the new Repo Rate now stands at 4.4%. Also, this was an unscheduled meeting of the MPC, the first of its kind held to increase rates. The committee usually meets six times in a financial year, i.e., every two months. The monetary policy determines the quantity of money available in the Indian economy and the mediums through which the money is supplied. The …

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