"Inflation Under Control: Unveiling the Arsenal of Tools - Repo Rates and Fiscal Policy"

Inflation, a key economic indicator, demands the adept utilization of various tools to maintain stability and foster sustainable growth. Repo Rates and Fiscal Policy emerge as powerful instruments empowering policymakers to navigate the intricate terrain of inflation.

INFLATION:-

Inflation is the rate of increase in prices over a given period of time. Inflation is typically a broad measure, such as the overall increase in prices or the increase in the cost of living in a country.

REPO RATE:-

Repo rate is the interest rate at which the RBI lends to banks in the country. The repo rate increases are intended to make credit costlier; banks generally pass on the increased costs to customers and loans become costlier.

FISCAL POLICY:-

fiscal policy, measures employed by governments to stabilize the economy, specifically by manipulating the levels and allocations of taxes and government expenditures. Fiscal measures are frequently used in tandem with monetary policy to achieve certain goals.

RELATION OF INFLATION WITH REPO RATE & FISCAL POLICY.

Repo rate gets increased when the country is going through high inflation and gets decreased when the country heads towards deflation.

The tools of fiscal policy also aim to stabilise the economy during various inflationary pressures.
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