Question:
Which is the single policy rate to unambiguously signal the stance of monetary policy as recently recommended by RBI?
Which is the single policy rate to unambiguously signal the stance of monetary policy as recently recommended by RBI?
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Repo Rate = benchmark interest rate = RBI’s key tool for monetary stance.
Updated On: Aug 7, 2025
- PLR
- Repo
- Bank
- CLR
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Verified By Collegedunia
The Correct Option is B
Solution and Explanation
The RBI has identified the Repo Rate as the sole policy rate to signal the stance of monetary policy. It is the rate at which the RBI lends short-term funds to commercial banks, influencing liquidity and interest rates in the economy.
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