Policy Rate

Policy Rate, also referred to as the central bank's benchmark interest rate, is a critical financial metric that influences a nation’s economic stability. This rate determines the cost at which commercial banks can borrow from the central bank, thereby affecting lending rates across various financial institutions. Adjustments in the Policy Rate can either stimulate economic growth by making borrowing cheaper or curb inflation by making loans more expensive. Understanding Policy Rates is essential for investors, businesses, and consumers as these rates play a pivotal role in financial decision-making, from loan applications to investment strategies. Stay updated on the latest Policy Rate changes to better navigate the financial landscape and make more informed economic decisions.