DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 7th February 2025
Archives (PRELIMS & MAINS Focus) RBI’S REPO RATE CUT Syllabus: Prelims & Mains – ECONOMY Context: After holding the repo rate at 6.50 per cent for two years, the Reserve Bank of India’s (RBI) six-member Monetary Policy Committee (MPC) reduced the key policy rate by 25 basis points (bps) to 6.25 per cent on February 7. Background: – This marks the first repo rate cut in nearly five years and will likely lead to a fall in interest rates and equated monthly instalments (EMIs) on home and personal loans. Key takeaways The repo rate is the interest rate at which the Reserve Bank of India (RBI) lends money to commercial banks. The term “repo” stands for Repurchase Agreement or Repurchasing Option. Mechanism: When commercial banks need funds, they can sell securities to the RBI with an agreement to repurchase them at a predetermined price. The difference between the sale and repurchase price is the interest charged, which is the repo rate. The main reason behind the repo rate cut is to stimulate economic growth by making borrowing cheaper, leading to increased spending and investment, ultimately supporting job creation and employment. How might the repo rate cut impact the economy? All external benchmark lending rates (EBLR) — lending rates set by the banks based on external benchmarks such as the repo rate — will come down by 25 bps, giving relief to borrowers as their equated monthly instalments (EMIs) will also fall. Lenders may also reduce interest rates on loans that are linked to the marginal cost of fund-based lending rate (MCLR, or the minimum lending rate below which a bank is not allowed to lend), where the full transmission of a 250-bps hike in the repo rate between May 2022 and February 2023 has not happened. EMIs on home and vehicle loans will come down, making it easier for individuals to repay their debts. A lower repo rate makes borrowing cheaper for individuals and businesses, which can lead to increased spending and investment, thereby boosting economic growth. However, a lower repo rate can lead to higher inflation, as increased money supply and lower interest rates can drive up prices. It can reduce the interest earned on savings, making it less attractive for individuals to save. Source: Indian Express MARINE HEATWAVES (MHWs) Syllabus: Prelims & Mains – ENVIRONMENT Context: The marine heatwaves (MHWs) linked to the death of more than 30,000 fish off the coastal Western Australia in January were made up to 100 times more likely to occur due to climate change. Background: – The MHWs began in September 2024 and are still ongoing in the region. The current MHWs are the second-worst in Western Australia’s recorded history. The region saw its most intense MHWs during the 2010–11 summer, when temperatures soared to 5 degrees Celsius above average. Key takeaways A marine heatwave occurs when the surface temperature of a particular region of the sea rises to 3 or 4 degrees Celsius above the average temperature for at least five days. MHWs can last for weeks, months or even years. A 2021 report by the International Union for Conservation of Nature (IUCN) said MHWs have increased by 50% over the past decade and now last longer and are more severe. MHWs have been recorded in surface and deep waters, across all latitudes, and in all types of marine ecosystems, the report said. Why have marine heatwaves intensified? The primary reason is the climate crisis. As global temperatures have soared to 1.3 degrees Celsius above the pre-industrial levels, 90% of the extra heat has been absorbed by the ocean. Global mean SST increased close to 0.9 degrees Celsius since 1850, and the rise over the last four decades is around 0.6 degrees Celsius. As a result, MHWs have become more frequent, long-lasting, and severe. Impact Of Marine Heatwaves MHWs can be devastating for marine life. For example, the 2010-11 MHWs in Western Australia caused large-scale fish kills. It also destroyed klep forests and fundamentally altered the ecosystem of the coast. Kelps usually grow in cooler waters, providing habitat and food for many marine animals. These heatwaves contribute to coral bleaching, which reduces the reproductivity of corals and makes them more vulnerable. Thousands of marine animals depend on coral reefs for survival and damage to corals could, in turn, threaten their existence. Source: Indian Express RISING TENSIONS IN THE GREAT LAKES REGION Syllabus: Prelims – GEOGRAPHY Context: Days after the capture of Goma, M23 rebels and allied Rwandan forces have launched a new offensive in the eastern Democratic Republic of Congo (DRC). Background: The ongoing insurgency in the DRC, which is the continuation of protracted turmoil and insecurity that has plagued the region for generations, is intertwined with the region’s geography and resources. Key takeaways The Great Lakes Region of Africa The Great Lakes Region of Africa, located in East and Central Africa, is a series of lakes in and around the East African Rift Valley. This network of large freshwater lakes in the heart of Africa is endowed with various natural resources, which give the East African Rift Valley a unique ecology and socioeconomic significance. These lakes include Lake Victoria, Lake Tanganyika, Lake Malawi, Lake Albert, Lake Kivu and Lake Edward. They are surrounded by ten riparian states that include Burundi, the DRC, Ethiopia, Kenya, Malawi, Mozambique, Rwanda, Tanzania, Uganda, and Zambia. Most of them have a traumatic past, while violent conflict is endemic in the region. The resource curse—whereby abundant natural wealth spurs conflict and corruption—is a recurring theme. Source: Indian Express WESTERN DISTURBANCE Syllabus: Prelims – GEOGRAPHY Context: A significant temperature drop has been observed across North India due to a western disturbance currently positioned over North Pakistan, the India Meteorological Department (IMD) reported. Background: – The system is gradually moving eastward, impacting weather patterns in the region. Key takeaways Western Disturbances are extratropical storm systems that originate over the Mediterranean Sea/ Caspian Sea region. These systems travel eastward across the Middle East into the Indian subcontinent, particularly affecting the northern
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