Question

Between May 2022 and January, Repo Rate was hiked six times by RBI. What was the primary reason for such a policy?

विकल्प

• Controlling inflation

• Promoting economic growth

• Reducing unemployment

• None of these

Answer 1

Controlling inflation

Explanation:

The RBI raised the repo rate to make borrowing more expensive, helping to reduce credit, spending and inflationary pressure. The other options are not the primary reason for these rate hikes.