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Home / Finance / Home Loan / Why can an increase in repo rate not address the problem of high inflation
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Why can an increase in repo rate not address the problem of high inflation

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0 2022-08-30T17:48:30+00:00
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Hey,

The Repo rate does help in controlling inflation.

In case there’s a high level of inflation, the Reserve Bank of India tries to bring down the flow of money in the economy. Increasing the repo rate is one way to do this. This makes borrowing an expensive affair for industries and businesses, which in turn helps slow down investment & money supply in the market.

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Read more:

What is repo rate of RBI?

How repo rate controls inflation?

What is the difference between bank rate and repo rate?

 

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