Which of the following best explains the rationale behind the Monetary Policy Committee (MPC) maintaining the policy repo rate at 6.5 percent in FY24?
1
To promote higher credit growth by reducing borrowing costs.
2
To align inflation gradually with its target while supporting economic growth.
3
To increase foreign direct investment by stabilizing the currency exchange rate.
4
To decrease the current account deficit by boosting export competitiveness.
5
To reduce fiscal deficit by enhancing tax revenue through economic growth.