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How RBI Decides Monetary Policy: Key Factors Behind Rate Cut, Hike or Status Quo
(Based on Article in Indian Express dated 5th August 2026 by UDIT MISHRA)
The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) meets every two months to decide whether the repo rate should be cut, increased or kept unchanged. The repo rate is the interest rate at which RBI lends money to commercial banks and is its most important monetary policy tool.
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Learn how RBI's Monetary Policy Committee decides on repo rate cuts, hikes or status quo. Understand the key factors: inflation, oil prices, monsoon, and growth indicators.
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