In November 2008, the Reserve Bank of India RBI) lowered its ʺrepoʺ rate, the rate at which it lends to banks, from 8 percent to 7.5 percent. Only two weeks earlier, it had lowered the rate from 9 percent to 8 percent.
The Economist, 11/6/2008
The Reserve Bank of India is lowering its rates to fight

Question

Quizplus · Accepted Answer

The lowering of repo rates by the Reserve Bank of India is a monetary policy tool to stimulate the economy and encourage borrowing and lending. By reducing interest rates, the central bank is attempting to increase spending and investment, which can help lift the economy out of a recession. Lowering rates in response to decreasing money demand or rising net exports would not be effective in stimulating the economy, and lowering rates during inflation would risk exacerbating price increases.

In November 2008, the Reserve Bank of India RBI) Lowered