CURRENT AFFAIRS

Detailed explanation-1: -On May 22, 2020, RBI again cut the repo rate by 40 basis points and brought it down to 4 per cent. Thereafter, it maintained status-quo in the benchmark interest rate for almost two years before increasing it on May 4, 2022.

Detailed explanation-2: -Here’s why. There is room for at least another 50 bps hike in India’s policy repo rate going forward. In December 2022 policy, RBI hiked the repo rate by 35 bps to 6.25%, however, maintained its withdrawal of accommodation stance.

Detailed explanation-3: -RBI recently hiked the repo rate by 35 basis points to 6.25% from 5.90%. The reverse repo rate remains unchanged at 3.35%. Changes in the repo rates can directly impact big-ticket loans such as home loans. The decrease in repo rates is to aim at bringing in growth and improving economic development in the country.

Detailed explanation-4: -This is the fifth time in a row that these crucial rates haven’t been revised. In May 2020, the repo rate was reduced by 40 basis points from 4.4% to 4% and the reverse repo rate was made 3.35%. Repo rate and reverse repo rate are monetary policies used by RBI to maintain economic stability in the country.