ECONOMICS
MONETARY POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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true
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false
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Either A or B
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None of the above
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Detailed explanation-1: -In the news, it’s sometimes called the ‘Bank of England base rate’ or even just ‘the interest rate’. Our Monetary Policy Committee (MPC) sets Bank Rate. It’s part of the Monetary Policy action we take to meet the target that the Government sets us to keep inflation low and stable.
Detailed explanation-2: -Reserve Bank of India-Lending Rates.
Detailed explanation-3: -Calculation of Base Rate The base rate is calculated by the country’s central regulatory body, the Reserve Bank of India. The RBI determines the base rate in order to bring uniform rates to all Indian banks, whether they are nationalized banks or they belong to the private sector.
Detailed explanation-4: -Bank of England base rate history The BoE has been setting the base rate in the UK since way back in 1694. Following the global financial crisis in 2008, the BoE gradually cut the base rate from 5.5% down to just 0.25% in August 2016-at the time the lowest interest rate the UK had ever seen until that point in time.
Detailed explanation-5: -The market is pricing in further interest rate hikes in 2023, predicting that the Bank of England base rate will rise as high as 4.6% by July 2023 before slowly falling over the next five years to around 3.5%.