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Smart Reasoning:

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Qaagi - Book of Why

Causes

Effects

The RBI Governor reiterted that the increase in the inflation rate including the house hold inflation , wages and increased costs were more than anticipatedpromptedan increase in the REPO Rate

two possible factorscould leadto the repo rate being increased

that the SARB 's shortfall becomes greatercausingthe Repo Rate to rise

a higher Interbank borrowing rateleadsto higher repo rate

either of these factorstriggersa repo rate increase

many micro and macro factorscausesthe repo rate to increase / decrease

the rate of inflationwill leadto an increase in the repo rate

cost - push inflation ... in turnmay causethe repo rate to increase

taper tantrumsleadingto higher repo rate

the situation of disincentive for banks to borrowcreatesthe situation of disincentive for banks to borrow

to further hardening of interest rate structure in the economy , especially the lending rateswill leadto further hardening of interest rate structure in the economy , especially the lending rates

to an immediate increase in the rate of interest as against a quarterly rate revision cycle associated with a non - Repo Rate linked home loanwill leadto an immediate increase in the rate of interest as against a quarterly rate revision cycle associated with a non - Repo Rate linked home loan

to increasing interest rates for consumers , which in turn makes buying durable goods ( usually financed through debt that carries interest ) more expensiveleadsto increasing interest rates for consumers , which in turn makes buying durable goods ( usually financed through debt that carries interest ) more expensive

a spike in the FD interest ratecausesa spike in the FD interest rate

in poorer liquidityresultsin poorer liquidity

to an increase in interest rates on both , loans and depositsleadsto an increase in interest rates on both , loans and deposits

to increased costs of borrowing for commercial banksleadsto increased costs of borrowing for commercial banks

to lower volumes of creditcould leadto lower volumes of credit

to make home loans more expensive Home loans will now become more expensive with the RBI ( Reserve Bank of India ) increasing repo rates again under its bi - monthly monetary policy reviewsetto make home loans more expensive Home loans will now become more expensive with the RBI ( Reserve Bank of India ) increasing repo rates again under its bi - monthly monetary policy review

in higher inflationwould resultin higher inflation

forward price of bond to increaseis causingforward price of bond to increase

to higher interest rate on home loan , car loans , and corporate borrowingsmainly leadsto higher interest rate on home loan , car loans , and corporate borrowings

to an increase in interest rates and vice versawill leadto an increase in interest rates and vice versa

to increase in lending rates of banks and vice - versaleadsto increase in lending rates of banks and vice - versa

to an elevated Marginal Cost of fund based Lending Rate which eventually increases the lending rateswill leadto an elevated Marginal Cost of fund based Lending Rate which eventually increases the lending rates

to decreasing money supply in the countrywill leadto decreasing money supply in the country

possibilities of fueling inflation in the long runis creatingpossibilities of fueling inflation in the long run

to more lending activity for commercial banksleadsto more lending activity for commercial banks

to increase in borrowing costs for banks and hence leads to increasing cost of borrowing by consumersleadsto increase in borrowing costs for banks and hence leads to increasing cost of borrowing by consumers

in an appreciation for the domestic currencyresultsin an appreciation for the domestic currency

to increased lending rates and bank prepayments , which will have a significant impact on small and medium - sized enterprises in Indiawill leadto increased lending rates and bank prepayments , which will have a significant impact on small and medium - sized enterprises in India

to increased lending activities by banksleadsto increased lending activities by banks

upward revision in the Marginal Cost of Lending Rate ( MCLR ... by the bankswill triggerupward revision in the Marginal Cost of Lending Rate ( MCLR ... by the banks

a vacuum in the growth story which is already struggling from the setback of demonetization and GSTmight createa vacuum in the growth story which is already struggling from the setback of demonetization and GST

to higher borrowing costscould leadto higher borrowing costs

to make home loans more expensive - Square Capital August 3setto make home loans more expensive - Square Capital August 3

to higher short term borrowing rate for the banks which again leads to higher prime lending rate , the rate at which banks lends money to other customers or corporatesleadsto higher short term borrowing rate for the banks which again leads to higher prime lending rate , the rate at which banks lends money to other customers or corporates

in an increase in the prime lending ratewill resultin an increase in the prime lending rate

definitelywill ... resultdefinitely

to many South Africans feeling the pinchcould leadto many South Africans feeling the pinch

a shortfall of funds for the commercial banksalso causesa shortfall of funds for the commercial banks

an increase in the borrowing rate for a loan against goldwill ... causean increase in the borrowing rate for a loan against gold

other things remaining constantwill leadother things remaining constant

to reduce India ’s persistently high inflation and also provide support to the currencyis designedto reduce India ’s persistently high inflation and also provide support to the currency

to increase in Reverse Repo Rate 77leadsto increase in Reverse Repo Rate 77

a movement along the investment function and not a shift of the curvewould causea movement along the investment function and not a shift of the curve

in an increase in credit rate , which affected the poor most severelyresultedin an increase in credit rate , which affected the poor most severely

David Walker , Executive Director , SARE Homes(passive) is designedDavid Walker , Executive Director , SARE Homes

free market forces(passive) caused byfree market forces

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Smart Reasoning:

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