RBI Repo Rate: By How Many Basis Points Was the Rate Increased? | Current Affairs

Prepare for competitive exams with this important banking awareness question about the Reserve Bank of India (RBI) and its monetary policy decisions.

❓ Question: The Reserve Bank of India (RBI) recently raised the repo rate to 5.50%. By how many basis points was the repo rate increased?

✅ Answer: The increase depends on the previous repo rate. If the rate was raised from 5.25% to 5.50%, the increase was 25 basis points (0.25 percentage points).

📌 Key Facts

Central bank: Reserve Bank of India (RBI)

Monetary policy instrument: Repo rate

Reported new rate: 5.50%

Basis point: One basis point equals 0.01 percentage point.

Calculation: 5.50% − 5.25% = 0.25 percentage points = 25 basis points.

🏦 What Is the Repo Rate?

The repo rate is the interest rate at which the RBI lends short-term funds to banks against eligible securities. Changes in the repo rate can influence borrowing costs, lending rates, inflation, and economic activity.

⚡ CURRENT AFFAIRS QUICK REVISION

5.25% → 5.50% = Increase of 25 basis points.

Note: Verify the reported RBI rate decision and previous rate against the official monetary policy announcement before publishing.

🎯 Useful for Competitive Exams

UPSC, SSC CGL, SSC CHSL, Banking Exams, IBPS, SBI, RBI, SEBI, Insurance Exams, Railway Exams, and State PCS.

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