AMBER – ABBS Management Business and Entrepreneurship Review

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The main focus of this research study is to look into the determinants of interest rates in India post demonetisation. India entered the demonetised phase in November of 2016, and since then the economy has slugged down a lot. This study aims at studying the three explanatory variables; inflation rate, money supply and monetary policy rate in order to evaluate their impact on the trend of interest rate. It is a general belief that the variables have a relationship, in so much that they affect the interest rates. The RBI takes measures so as to create an investment-friendly rate of interest, which is necessary for promoting economic growth. This should be addressed as infrastructural expenditure incurred by banks are passed to borrowers through interest rate.

Keywords

Interest Rate, Demonetisation, Monetary Policy Rate and Economic Growth.
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