What impact does the unchanged policy rate by RBI Monetary Policy Committee have on the economy
RBI Monetary Policy Committee meeting: policy rate unchanged at 6.5% for 10th time in a row
- Continued unchanged policy rate indicates stability in the economy and monetary policy direction.
- It may boost investor confidence as it signals the central bank's confidence in the current economic scenario.
- Unchanged policy rate may encourage borrowing and investment due to lower cost of borrowing.
- It could lead to increased consumer spending as borrowing costs remain low.
- However, there could be concerns about inflation if economic growth outpaces the capacity, leading to a potential need for rate hikes in the future.
- Overall, the impact of a unchanged policy rate on the economy depends on various factors such as inflation, growth, and global economic conditions.
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7 months ago