Question: As per the Reserve Bank of India fifth bi-monthly monetary policy statement for the year 2019-20; what is the current repo rate?
(a) 5.15 percent
(b) 5.25 per cent
(c) 5.35 percent
(d) 5.45 percent
Answer: (a)
Related facts:
- According to the policy, released on December 5, 2019, the repo rate was unchanged at 5.15%.
- This is the first stance in the current financial year that a no change approach has been adopted after four successive rate cuts.
- Last time it was cut by 25 basis points to a 9-year low.
- Accordingly, the reverse repo rate stood at 4.9% and the bank rate stood at 5.4%.
- The CPI projection was increased from 4.7% to 5.1%.
- It is to be noted that RBI is currently following target inflation at 4% with a band of ±2 per cent.
- The monetary policy committee said that the global economic activity has subdued since its last meeting.
- Among the other emerging markets, growth of China has decelerated in the Q3 and its exports have declined greatly mainly due to trade tensions with the US.
- The GDP growth of Russia and Brazil in the Q3 has accelerated. It was mainly due to agricultural output and industrial activities.
- Sixth bimonthly policy for financial year 2019-20 will be released on February 6, 2020.
Links:
https://www.rbi.org.in/
https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=48802