ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Not by Lending Rates Alone

Investment Revival

An analysis of bank lending rates suggests that reducing the lending rate, while important, may not be as critical to reviving investment as it is made out to be. The three interest rate regimes followed over the last two decades or so are compared here and it is found that the current base rate regime is by far the most stable, and is one which reduces uncertainty of interest costs.

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