Question: The Six-member monetary policy committee of the RBI voted 4-2 to reduce the policy repo rate by _____ on April 4, 2019.
(a) 25 basis points
(b) 50 basis points
(c) 75 basis points
(d) None of the above
Answer: (a)
Related facts:
(a) 25 basis points
(b) 50 basis points
(c) 75 basis points
(d) None of the above
Answer: (a)
Related facts:
- First bi-monthly monetary policy statement (Resolution of the MPC) for 2019-20 released on 4 April, 2019.
- The six member monetary policy committee (MPC) of the RBI voted 4-2 to reduce the policy repo rate by 25 basis points.
- This was widely expected by economists and bond-market participants who anticipate at least one more cut in the coming policies.
- Banks, however, remain non-committal about paring down their lending rates.
- RBI kept the policy stance unchanged while the repo rate became 6 percent from 6.25 percent earlier.
- The first bi-monthly monetary policy of the fiscal 2019-20 was more concerned about growth than inflation.
- RBI now expects the GDP to grow at 7.2 percent in 2019-20, lower than its earlier projection of 7.4 percent.
- The CPI inflation is now expected to be 2.4 percent in the fourth quarter of 2018-19, 2.9-3.0 percent in the first half of 2019-20, and 3.5-3.8 percent in the second half, with risks broadly balanced.
- Policy Rats of RBI are as follows: Policy Repo Rate: 6.0%; Reverse Repo Rate: 5.75%; Marginal Standing Facility rate: 6.25%; Bank rate: 6.25%
- Reserve Ratios are as follows: CRR: 4%; SLR: 19.00%
Links:
https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=46838