Question

What can the central bank do to control inflation in an economya) increase repo rate b) Reduce CRR c) Increase CRR d) Both a) and c)​

Answer 1

Answer:

Inflation is generally controlled by the Central Bank and/or the government. The main policy used is monetary policy (changing interest rates). ... Monetary policy – Higher interest rates reduce demand in the economy, leading to lower economic growth and lower inflation.