Thread by @Cosmofeedapp

Saw a lot of tweets about #rbipolicy on twitter but do not know what it is ?

Here is small thread that will be help you.

Like and comment for a wider reach!

What is the RBI Policy?

RBI Monetary Policy is a macroeconomic policy of RBI. The main purpose of RBI Monetary Policy is money supply & interest rates.
#interestrates

What does this purpose achieve?

This purpose helps RBI to control & change Interest rates to maintain sufficient liquidity, consumption growth, and moderate Inflation.

#liquidity #InflationRate

How does RBI control Interest rates?
RBI does it with :

Repo rates - When RBI lends money to banks, the interest rate charged to banks is at repo rates. RBI increases/decreases it as per their stance and view on the economic expectation and growth. It currently is at 4.25%.

Reverse Repo Rates - RBI borrows money from banks, and the interest rates RBI pays is at Reverse Repo Rate. RBI increases/decreases it to decrease/increase money supply. Currently it is at 3.35%.

How frequently does this RBI policy occur and when is the next policy?

RBI monetary policy occurs bi-monthly and the next policy will be in the first week of April.

Major highlights from the February RBI policy:

1. No change in Repo & Reverse Repo Rate.
2. Forecast for FY23 GDP growth at 7.8%.
3. Loss of business due to 3rd Covid wave & Omicron.
4. RBI Inflation expects it to peak in Q4 FY22.

#rbipolicy #interestrates
#InflationRate