Stability and Growth: MPC's Decision to Maintain Repo Rates at 6.5%
Stability and Growth: MPC's Decision to Maintain Repo Rates at 6.5% As the Indian economy navigates through global challenges and domestic opportunities, the Monetary Policy Committee (MPC) recently announced its decision to keep the policy repo rates unchanged at 6.5%, a move aimed at fostering stability and supporting growth. Understanding Monetary Policy: Monetary policy is the powerful tool wielded by a central bank to regulate the country's money supply, interest rates, and inflation. It's a critical mechanism that influences borrowing costs, investment decisions, and spending patterns across sectors. Impact on the Economy: The MPC's decision to maintain the repo rates has profound implications for India's economic landscape: 1. Stability and Confidence: By keeping rates unchanged, the central bank sends a signal of stability and confidence in the ec...