GS3Economy · S&T · Environment · Security· Monetary policy, RBI & banking· Prelims + Mains·
Monetary policy and currency management: a key GS3 topic on inflation targeting and external shocks.
The RBI raised the repo rate by 25 basis points to 5.50% in its first hike since 2023 to adopt a calibrated tightening stance despite a weakening rupee.
The RBI's repo rate was hiked to 5.50% as the USD/INR pair approached its all-time low. The move occurred amidst Brent crude prices holding above $100 and 10-year Treasury yields hitting 5.36%.
What was the level of the 10-year Treasury yield at the time of the repo rate hike?
Answer: (a) 5.36% — The note states that 10-year Treasury yields hit 5.36% during the repo rate hike.
Q. Analyze the challenges faced by the RBI in managing currency depreciation and inflation while maintaining a calibrated monetary tightening stance.
Dimensions to cover in your answer
Keywords: Repo Rate · Monetary Policy · Currency Depreciation · Inflation Targeting · Externalities
This note is generated automatically from SatyaDheesh's news feed and mapped to the UPSC CSE syllabus. Check facts against the original report or PIB before using them in an answer.