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What's the meaning of Policy rate?

幫考網(wǎng)校2020-10-22 16:56:54
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Policy rate refers to the interest rate set by a central bank or monetary authority to regulate the economy by influencing borrowing, lending, and spending. It is the rate at which commercial banks can borrow money from the central bank, and it affects the cost of credit for businesses and consumers. The policy rate is a key tool used by central banks to control inflation, stimulate economic growth, and maintain financial stability.
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