Macro

Budget 2022: Bank rate kept low to aid recovery

The bank rate, which central bank changes for lending to commercial banks, is sharply down since FY12, when it was 9.5%. This allows banks and industry to access money at lower rates. When RBI raises the rate, the bank's borrowing costs go up, which reduces money supply and checks inflation.

Follow us on Facebook, Twitter, YouTube & Instagram to never miss an update from Fortune India. To buy a copy, visit Amazon.


Photograph :