The Reserve Bank of India (RBI) should move to a single-policy rate in order to better signal the stance on monetary policy, an internal working group on Tuesday said.
The Reserve Bank at present has two policy rates: the repo rate, which represents the cost of borrowing from the central bank; and the reverse repo rate, the charge levied on banks' funds held at the RBI. However, the working group recommended that the central bank adopt the repo rate as its sole policy rate.
"The repo rate should
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