Repo Rate And Inflation. If there is more money with people = their purchasing power will increase = more people will be ready to buy goods and services = hence demand for goods and services will increase=. Repo rate is an important component of the monetary policy of the nation, and it is used to regulate the liquidity, inflation, and money supply of the nation.

Rbi to hike repo rate by 50 basis points, lower fy23. Given the central bank's desire to signal that inflation management remains key for its policy objectives, we believe the rbi will stay the course and deliver a 0.50 per cent hike in. Given the central bank's desire to signal that inflation management remains key for its policy objectives, we believe the rbi will stay the course and deliver a 0.50 per cent hike in.