Repo rate and how it effects inflation?

Question

Repo rate and how it effects inflation?

Answer 1

its round the other way. inflation is a measue of how much the price of goods and services rises or falls. As when inflation rises the cost of goods and services rises and people tend to slow down in spending.

The repo rate is related bybthe fact the less wealthy people with loans/ debts start to struggle with their finances and sometimes will default. The default rises as inflation rises as people can no longer afford their current expenses. Inflation it self is affected by the state of the economy as a whole. At the moment the largest contributor to inflation rise is world oil prices.