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STREET

Team members

Kundan Kumar, IM, kkundan49@gmail.com, 7760055700

Akhand, IM, akhand!@gmail.com, 77740970!6

A"aneesh, IM, a"aneesh.kulshres#ha@gmail.com , 976$9470%9

Manmee#, IM, manmee#.oberai@gmail.com, %97796$7$Abhishek, IM, rabhishek$05@gmail.com, 979940

Anish Kumar, IM, anishkumargarg!0@gmai.com, 99749960

mailto:kkundan49@gmail.commailto:akhand121@gmail.commailto:avaneesh.kulshrestha@gmail.commailto:manmeet.oberai@gmail.commailto:rabhishek305@gmail.commailto:anishkumargarg20@gmai.commailto:anishkumargarg20@gmai.commailto:rabhishek305@gmail.commailto:manmeet.oberai@gmail.commailto:avaneesh.kulshrestha@gmail.commailto:akhand121@gmail.commailto:kkundan49@gmail.com

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. &'ec# o( in#eres# ra#e mechanism onin)a#ion

Marke# in#eres# ra#e

*ecrease inconsum+#ion and

reduc#ion inin"es#men#

educ#ion in demand

-oer in)a#ion

Increase inconsum+#ion and

increase inin"es#men#

Increase in demand

Increase in in)a#ion

Increase *ecrease

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!. Ke/ +olic/ ra#es and #heir im+ac# oneconom/

Key rates use by the Reserve Bank of Indiato tweak the supply chain curve in theIndian economics

Repo rate : e+o or e+urchase ra#e is #he ra#e a# hich I lends money#ocommercial banks. 2rac#icall/ im+lemen#edb/ I b/ bu/ing go"ernmen# bonds(rom banks i#h an agreemen# #o sell #hem back a# a 3ed ra#e . onsidered #o

#he single mos# im+or#an# #ool i#h #he I. urren#l/ s#ands a# 7.!5 .

Cash ReserveRatio (CRR) :

re(ers #o a +or#iono( de+osi#s as

cash8 hich banksha"e #o

kee+main#ain i#h

#he I. urren#l/a# 4.

Reverse repo rate :

Is #he eac# o++osi#eo( re+o ra#e.

The ra#e a# hich Iborros mone/ (rom#he banks or bankslend mone/ #o #heI8. urren#l/ a#

6.!5

Statutory Liquidity

ratio (SLR) : re(ers#o a +or#ion o(

de+osi#s as cash8hich banks ha"e #o

in"es# i#h #he I, in#he (orm o(go"ernmen#

securi#ies. urren#l/a# !.5

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Reporate

-endingra#e o(

banks

orroing(rom #he

marke#

Mone/demand

marke#

Impact of Key rates use by the Reserve

Bank of India

In)a#ion

Rever

se

Reporate

*e+osi#s o(

bank in I

Mone/ (or

bank #o lend

Mone/ )o in

marke#

CRR Minimum

balance o(banks in

Mone/ (orbank #olending

Mone/ )o inmarke#

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$. :olloing (ac#ors con#ribu#e grea#l/

#oards de+recia#ion o( Indian urrenc/

-oera+i#alIn)os

*ue #o increased in#eres# ra#es in ;igh in)a#ion discourages #he in"es#ors (rom in"es#ing in India andhence de"alues #he currenc/

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urrenc/ de"alua#ion has bo#h+osi#i"e as ell as nega#i"e im+ac#

Im+ac# o(urrenc/

*e"alua#ion

2osi#i"eIm+ac#

?ega#i"eIm+ac#

&+or# orien#edcom+anies s#and #obene3# (rom a eakru+eeIT, Te#ilee#c8

Increase in im+or#billIndus#riesde+enden# u+on(oreign im+or#s aread"ersel/

a'ec#ed&:er#ilier Indus#r/8

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4. BA*MA2 :B I K&C 2B-ICAT&A< BM& *BE?

*ue #o #his mone/ circula#ed in econom/ ill comedon so #o main#ain #he liFuidi#/ in Indian marke#s Is#e+s in i#h i#s #ools

Dro#h is reFuired and #ha# needs ra#e cu# bu# Do"#needs #o be cau#ious no# #o #rade shor# #erm gro#h (orlong #erm in)a#ion

TBB-< :B MA?ADI?D &B?BMC

&2B AT&

&G&

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5. oadma+ (or India=s 3scal +olic/

>igher TaD*2a#io

Indias #a#oD*2 ra#io has been be#een % and ! +er cen# o"er #he +as# #odecades. ;sing D

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6. Im+ac# o( im+ending ;< in#eres# ra#erise on Indian &conom/

Increase in ;