macro economics
All editorial pieces filed under macro economics. 0 quick takes · 0 notes · 10 deep dives.
Open Market Operations (OMO)
OMOs are RBI's mechanism to manage banking system liquidity by buying or selling G-Secs in the secondary market. OMO purchases inject liquidity and support bond
Treasury Bill (T-Bill) — India
Treasury Bills are short-term, zero-coupon, sovereign-backed government securities issued by the Government of India via RBI auctions. They are the risk-free be
Marginal Cost of Funds-based Lending Rate (MCLR)
MCLR replaced the Base Rate system in 2016 as RBI's benchmark for bank lending rates. Understanding MCLR helps borrowers and fixed-income investors assess loan
Statutory Liquidity Ratio (SLR)
SLR requires banks to hold a percentage of NDTL in approved liquid assets — primarily government securities. SLR reductions create room for private credit; high
Cash Reserve Ratio (CRR)
CRR mandates that banks park a percentage of their net demand and time liabilities (NDTL) as cash with RBI. Changes to CRR directly alter the money supply and b
Gross Domestic Product (GDP) — India
GDP is the broadest measure of India's economic output, released quarterly by the National Statistical Office. Real GDP growth drives corporate earnings cycles,
Wholesale Price Index (WPI) — India
WPI measures input-cost inflation at the producer level, acting as a leading indicator for CPI and corporate margin pressure. Released weekly by the Office of E
Consumer Price Index (CPI) — India
CPI is India's primary retail inflation gauge and the anchor for RBI's monetary policy framework. Understanding CPI helps investors anticipate repo rate changes
Reverse Repo Rate — RBI Liquidity Absorption
The reverse repo rate is the rate at which RBI borrows from banks overnight, absorbing surplus liquidity from the banking system. Since 2022, the Standing Depos
Repo Rate — RBI Policy Rate
The repo rate is RBI's primary monetary policy instrument — the rate at which RBI lends overnight funds to banks. Changes to repo rate transmit to FD yields, le