Current Affairs · Monetary Policy
Which of the following statements best explains the RBI's reason for maintaining a neutral stance in its August 2025 Monetary Policy?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1To signal a hawkish approach in controlling gold-driven core inflation.
- 2To align India's monetary policy directly with the U.S. Federal Reserve's decisions.
- 3To allow flexibility for future rate hikes or cuts based on evolving economic data.✓
- 4To ensure that inflation remains below 2% over the medium term.
Correct answer
To allow flexibility for future rate hikes or cuts based on evolving economic data.
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