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MacroSpark Labs
Monetary Policy Simulator
Adjust the central bank's repo rate and see the modeled effect on borrowing costs, inflation, and GDP growth through the monetary policy transmission mechanism.
Current repo rate
%
This is a simplified educational model using illustrative elasticities/multipliers, not an official RBI/government forecasting model — figures are computed live from your inputs but should not be used for real policy decisions. It assumes a baseline lending rate of repo + 2.5 pts, an 0.8x lending-rate passthrough, a −0.3 pt GDP growth impact and a −0.5 pt inflation impact per 1 pt of repo change, phased in over four quarters (20% / 50% / 80% / 100%) to represent monetary policy transmission lag.
Projected Lending Rate9.40%
GDP Growth Impact (full effect)
-0.15% ptsInflation Impact (full effect)
-0.25% ptsNew Repo Rate
7.00%Transmission Over 4 Quarters
GDP Growth ImpactInflation Impact