What Is RBI Monetary Policy? Things Students Must Know

By Jasreet Kaur05, Apr 2024 06:30 PMjagranjosh.com

RBI Monetary Policy

The Reserve Bank of India (RBI) made some significant announcements during its most recent monetary policy review. Tap to read a simple breakdown of the key questions answered for students.

What is RBI's monetary policy?

Regulates money supply and interest rates to control inflation, promote growth, and ensure financial stability.

What are the main tools?

Add the following terms to your list of economic variables; Repo Rate, Reverse Repo Rate, CRR, SLR, and OMO.

Impact on students?

Affects loan interest rates, credit availability, inflation, and overall economic growth, indirectly influencing students' financial situations.

Interest rate changes?

According to The Economic Times, the RBI decided to keep the interest rate (repo rate) the same at 6.5%, which affects how much it costs to borrow money.

Impact on student loans?

Higher rates raise costs and make it harder for students to pay for their education, while lower rates make borrowing easier.

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