Correct option is D
The correct answer is: (d) Neutral
Explanation:
• In the October 2024 MPC meeting, RBI kept the policy stance as Neutral.
• This indicates no bias toward either raising or reducing interest rates.
• The stance balanced inflation concerns with the need to support growth.
• This indicates no bias toward either raising or reducing interest rates.
• The stance balanced inflation concerns with the need to support growth.
Information Booster:
• Neutral stance means RBI can move rates either way depending on future data.
• MPC follows the inflation-targeting framework of 4% ± 2%.
• RBI kept the repo rate unchanged due to mixed domestic and global economic signals.
• Liquidity management remained a key focus due to rising volatility.
• Neutral stance helps maintain policy flexibility.
• MPC follows the inflation-targeting framework of 4% ± 2%.
• RBI kept the repo rate unchanged due to mixed domestic and global economic signals.
• Liquidity management remained a key focus due to rising volatility.
• Neutral stance helps maintain policy flexibility.
Additional Knowledge:
• Accommodative: Focuses on supporting growth by lowering interest rates.
• Hawkish: Prioritises inflation control with a bias toward rate hikes.
• Tightening: Involves raising interest rates or reducing liquidity.
• Neutral: Signifies balanced approach—used in October 2024 MPC meeting.
• Hawkish: Prioritises inflation control with a bias toward rate hikes.
• Tightening: Involves raising interest rates or reducing liquidity.
• Neutral: Signifies balanced approach—used in October 2024 MPC meeting.
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