07 February, 2020
3 Min Read
Syllabus subtopic: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment.
Prelims and Mains focus: about the steps taken by the MPC and their implications; repo rate; CRR; MPC; CPI
News: The Reserve Bank of India (RBI) stepped in to do the heavy lifting to revive the economy, after the Union budget appeared to have few measures to spur credit growth and boost demand.
About the RBI’s move
The central bank introduced a direct incentive framework to boost credit growth, even as the six- member monetary policy committee (MPC) kept benchmark rates unchanged because of uncertainty in the inflation outlook. The repo rate, the rate at which banks borrow from RBI, remained unchanged at 5.15%.
What steps has it taken?
Observations made by the RBI committee on inflation
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