The Monetary Policy Committee maintained a hawkish stand on the interest rates. In this context, ‘hawkish’ stand means ...................
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. interest rates were increased.
In the context of the Monetary Policy Committee maintaining a hawkish stand on interest rates, the term ‘hawkish’ means that interest rates were increased.
This approach indicates a focus on addressing inflationary pressures by tightening monetary policy. By raising interest rates, the committee aims to curb rising prices and stabilize the economy, even though higher rates can increase borrowing costs and potentially slow down economic growth.