Question: On April 5th, 2018, the Monetary Policy Committee (MPC), headed by the Reserve Bank of India Governor Urgit Patel, released the ‘First Bi-Monthly Monetary Policy Statement 2018-19’. On the whole, GDP growth is projected to strengthen from 6.6 per cent in 2017-18 to what per cent in 2018-19?
(a) 6.6 percent
(b) 7.2 percent
(c) 7.4 percent
(d) 6.9 percent
Answer: (c)
Related Fact:
- On April 5th, 2018, the Monetary Policy Committee (MPC), headed by the Reserve Bank of India Governor Urgit Patel, released the ‘First Bi-Monthly Monetary Policy Statement 2018-19’.
- Reserve Bank of India has kept policy rates, reserve cash ratio, net demand and periodic liabilities unchanged in the first bi-monthly monetary policy.
- Committee (MPC) has decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.0 per cent.
- Consequently, the reverse repo rate under the LAF remains at 5.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 6.25 per cent.
- Keeping the cash reserve ratio (CRR: Cash Reserve Ratio) of scheduled commercial banks unchanged, it was retained at 4 percent of net demand and dead liabilities (NDTL: Net Demand and Time Liabilities).
- The statutory liquidity ratio (SLR: Statutary Liquidity by Ratio) of scheduled commercial banks is kept unchanged at 19.50 percent.
- Consequently, the reverse repo rate under the LAF remains at 5.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 6.25 per cent.
- On the whole, GDP growth is projected to strengthen from 6.6 per cent in 2017-18 to 7.4 per cent in 2018-19.
Reference:
https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=43573