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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?
I have a question regarding the recent decision by RBI to not cut repo rates after removing the old currency notes. Why do you think that is?
One possible explanation could be that the RBI is concerned about inflationary pressures and wants to maintain a stable monetary policy. Cutting repo rates could potentially lead to an increase in lending and spending, which could drive up prices and inflation.