Chart check: Impact of rate hikes on GDP growth

Here is an interesting co-relation between GDP growth and repo rate hikes! This is reflective when we compare the repo rate with the GDP growth in the period between Q4, 2009-2010 and Q2, 2011-12. During the time, whenever there was a policy rate hike, GDP growth too dropped. It is virtually an inverse relation by nature.

December 13, 2011 / 16:05 IST

Moneycontrol Bureau

Here is an interesting co-relation between GDP growth and repo rate hikes!

The Reserve Bank of India (RBI) has hiked repo rates by 375 bps since March, 2010. The regulator does so in an effort to curb the rising rate of inflation. The mechanism behind this measure is to make money expensive in the system, which in turn, will trim the country

first published: Dec 13, 2011 12:30 pm

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