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Fixed Income And Currency Market

12 Feb 2023

What is the RBI target for real interest rates?

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Real interest rate is the spread between inflation and a T-bill or g-sec yield. Real rates have been hugely negative but have since come into positive territory indicating volatility in policy rates. This causes uncertainty in use of capital and also savings tend to come off. RBI has to find a right path and stick to it for a period of time

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Subhasis Mishra
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