The graph given below indicates the changes in key policy rates made by the Central Bank several times in a year. Which one of the following can be the most likely reason for the Central Bank for such an action?

Correct Option: Anti-inflationary stance

The graph depicts a series of consecutive upward revisions in the key policy rates (such as the repo rate) made by the Central Bank within a year. In central banking and macroeconomics, raising key policy rates is a standard monetary tightening tool. By increasing these rates, the Central Bank makes borrowing more expensive for commercial banks, which in turn increases lending rates for businesses and consumers. This reduces the money supply and liquidity in the economy, cooling down aggregate demand and controlling rising price levels. This action is classically defined as an anti-inflationary stance. Option A is incorrect because higher interest rates do not primarily aim to encourage foreign investment directly. Option B is incorrect because raising rates decreases liquidity rather than increasing it. Option C is a secondary effect and not the primary policy goal of multiple rapid rate hikes. Thus, Option D is the correct choice.