New Students Offer - Use Code HELLO

Register Now

RBI Slashed Reverse Repo Rate to 7.75%

Published on Thursday, January 15, 2015
As crude oil price are decreasing continuously, today RBI decreased the Reverse Repo Rate by 25 basis points.
  • Reverse Repo Rate slashed by 25 basis points to 7.75%
  • Cash Reserve Ratio kept at 4%


Interest rate will fall and fall in interest rates will lead to fall in Inflation rate.

Why RBI took this step

Due to continuous low crude oil prices, demand levels are decreasing. Low demand levels led to low rate of inflation. This is directly influencing the growth rate. That's why RBI decreased Reverse Repo Rate, RBI wants businessmen to take more loan and advances, produce more and thus help in improving slowing down economy.

Impact of Interest rate on Inflation

Interest rate impact

Can I help you?

ramandeep singh

Hey I am Ramandeep Singh. I am determined to help students preparing for RBI, SEBI, NABARD and IBPS exams. Do you want me to help you ?

Join my class here
    Follow me:
Close Menu
Close Menu