India's Rajan: Rate Decision 'Could Go Either Way'

The transcript discusses the use of models and subjective judgment in forecasting economic outcomes, highlighting the risks involved. It also covers the considerations for adjusting interest rates, emphasizing that decisions depend on incoming data and forecasts. The discussion remains neutral on whether rate cuts or hikes are more likely, focusing on achieving a 6% target by 2016.

What is the central forecast mentioned in the first section?

• 6% around January 2016

• 5% around January 2016

• 7% around January 2016

• 4% around January 2016

According to the second section, what is the stance on predicting rate cuts or hikes?

• Rate cuts are more likely

• Rate hikes are more likely

• Both are equally likely

• Neither is likely

What factor is crucial for deciding on rate changes as per the final section?

• Public opinion

• Political pressure

• Incoming data

• Historical trends

What will determine if there is room to cut rates?

• Confidence in hitting the 6% target early

• A decrease in public spending

• An increase in inflation

• A change in government policy

If the 6% target is not achievable by 2016, what action is suggested?

• Decrease rates

• Abolish rates

• Increase rates

• Maintain current rates