What does a decrease in the repo rate by the RBI typically indicate?

What does a decrease in the repo rate by the RBI typically indicate?

Step 1: Understand what the repo rate is. The repo rate is the interest rate at which the Reserve Bank of India (RBI) lends money to commercial banks.
Step 2: Recognize that a decrease in the repo rate means that it is cheaper for banks to borrow money from the RBI.
Step 3: Realize that when banks can borrow money at a lower cost, they are more likely to lend money to businesses and individuals.
Step 4: Understand that when banks lend more money, it can lead to increased spending and investment in the economy.
Step 5: Conclude that a decrease in the repo rate typically indicates an easier monetary policy, which aims to stimulate economic growth.

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