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RBI real interest rate: ET Explains: RBI s challenges with real interest rates amid sticky inflation

Despite the US Federal Reserve s hint at lower rates, the Reserve Bank of India (RBI) faces challenges with real interest rates, among the lowest in emerging markets. The RBI s 250 basis points rate hike hasn t significantly raised the real rate. Inflation dynamics pose a dilemma for the RBI in setting policy rates, balancing growth, financial stability, and currency considerations to ensure stable interest rates and liquidity.

Comment: Trials in absentia?

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