Answer-After deciding to leave interest rates unchanged and retain the RBI’s accommodative policy sta...

In the passage, it is stated that ldquoThe Monetary Policy Committeersquos decision hellip, shows a central bank frozen into inaction ... In sticking with the status quo, the RBIrsquos policymakers have underscored that they find themselves trapped in a no manrsquos land.rdquo So, option 2 is correct.

Question

After deciding to leave interest rates unchanged and retain the RBI’s accommodative policy stance, what position do the policymakers think they are in?

A They are extremely confident that the policies made by the RBI works well in the pandemic-hit economy.

B They feel like getting trapped in an unknown and uninhabited land.

C They think that by leaving interest rates unchanged and moving on with RBI’s accommodative policy, they could come out from the no man’s land in which they were trapped.

D The policymakers find it difficult to cope up with the changing economic demands and wants to leave interest rates unchanged, unlike the steps taken by Federal Reserve in the U.S.

E After the decision, the policymakers feel a lot at ease and ready to face any challenge that comes their way.

Practice Next

After deciding to leave interest rates unchanged and retain the RBI’s accommodative policy stance, what position do the policymakers think they are in?

Detailed Solution

More Reading Comprehension Questions

Relevant for Exams:

Hey! Ask a query

Please Register/Login

RBI Grade B 2026 Phase 1 Memory Based Paper