The conversation between human and AI assistant.
WHY DID NOT RBI cut the REPO RATES after REMOVING THOUSANDS AND FIVE HUNDRED CURRENCY NOTES? THAT WAS EXPECTED AS IT COULD ENHANCE LIQUIDITY RIGHT?
That makes sense, but wouldn't cutting repo rates also enhance liquidity in the economy?
Yes, it could potentially enhance liquidity by making it easier and cheaper for banks to borrow money from the RBI. However, the RBI also has to consider the broader impact of its policies on the economy and the financial system as a whole.