RBI Monetary Policy: The Monetary Policy Committee of the Reserve Bank of India (RBI) took key decisions in the ongoing 3-day meeting. In this meeting which continued under the leadership of RBI Governor Shaktikanta Das, the report was kept unchanged. Before the elections, the Reserve Bank gave a big relief to the people. Reserve Bank of India Governor Shaktikanta Das explaining the decisions taken in the meeting, this time also repo..
RBI Monetary Policy: Reserve Bank of India (RBI) Monetary Policy Committee took key decisions in the ongoing 3-day meeting. In this meeting which continued under the leadership of RBI Governor Shaktikanta Das, the report was kept unchanged. Before the elections, the Reserve Bank gave a big relief to the people. Explaining the decisions taken in the meeting, Reserve Bank of India Governor Shaktikanta Das said that this time too no change has been made in the repo rate and these rates have been kept stable at 6.5 percent.
The three-day Reserve Bank of India (RBI) Monetary Policy Committee meeting (monetary policy meeting) continued for three days. RBI announced its decision after the meetings. RBI Governor Shaktikanta Das announced that the report will be kept as it is in the country. Similarly, there will be no increase in EMIs paid by consumers on loans taken from banks. The first monetary policy has arrived for the new financial year 2024-25. To keep inflation under control in the country, the Reserve Bank of India (RBI) issues monetary policy every two months. It mainly decides on repo rate and reverse repo rate. But do you know what this monetary policy, repo rate or reverse repo rate is? Here you can understand in simple language.
What is monetary policy?
If we understand about the monetary policy.. the central bank RBI manages the flow of money in the market through it. The lower the cash flow in the market, the more it helps in controlling the purchasing power of the people. This ultimately reduces demand. Also, inflation will come down. But there is some risk involved. For this RBI has to maintain a balance. Monetary policy should maintain cash flow so that demand does not decrease to the extent that growth in the country’s economy stops. Hence the Reserve Bank of India does this every two months. Also Repo rate – reviews the reverse repo rate. A ‘Monetary Policy Committee’ has been constituted in RBI to review the monetary policy. This six-member committee meets for 3 days and takes decisions on monetary policy.
What is repo rate?
Now let’s know what is repo rate.. Commercial banks take loans from RBI. So the rate charged by commercial banks when they take loans from RBI is called repo rate. RBI itself does not manage the flow of money in the market. Banks help is taken for that. Banks in India depend on RBI for currency notes. Currently the repo rate is 6.50 percent.
What is reverse repo rate?
And reverse ratio means.. if there is more money deposited in the bank than required, it gives that money to RBI. RBI borrows this money from banks and pays them interest. This interest is called reverse repo rate.
