#ThinkUnparallel-01 The Most important and awaited decision in - TopicsExpress

#ThinkUnparallel-01 The Most important and awaited decision in India off late was whether RBI is going to decrease the Policy rate or let it remain unchanged. The RBI as widely expected by all economists kept the interest rate unchanged at 8 percent. This measure was taken by RBI so as to keep the money supply high resulting to the required targeted inflation and at the same time acting smoothly for Economic growth. RBI is acting dovish considering inflation and balancing Economic growth. RBI is expected to change the policy rate after getting certainty in growth policy and supply reforms in the budget for the year 2015-16. The policy rate is expected to decrease by 50 basis points *Policy rate here refers to the short term interest rate at which bank that the central bank manipulates through open-market operations. Open-market operations include the sale and purchase of bonds.

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