Current context: The Reserve Bank of India, RBI has maintained a status quo on policy rates in its sixth and last bi-monthly Monetary Policy for FY 19-20 on 5th Feb 2020.
a. 5%
b. 5.4%
c. 6%
d. 6.6%
- RBI has maintained a status quo on the policy rate with repo rate remains unchanged at 5.15% under the Liquidity Adjustment Facility (LAF) and is not expected to cut interest rates before June 2020.
- The six-member Monetary Policy Committee (MPC) headed by Governor Shaktikanta Das unanimously voted for a status quo with:
- The reverse repo rate under the LAF remains unchanged at 4.90%.
- The Marginal Standing Facility (MSF) rate and the Bank Rate at 5.40%.
- These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 % within a band of plus or minus 2%.
- The status quo on policy rates will help in controlling inflationary expectations and providing support to growth.
- RBI has also decided to continue with the accommodative stance while ensuring that inflation remains within the target.
- The RBI has revised CPI inflation projection upwards to 6.5% for Q4 of 2019-20, 5.4-5% for H1 of 2020-21; and 3.2% for Q3 of 2020-21, with risks broadly balanced.
- GDP growth for FY 2020-21 has been projected at 6%, in the range of 5.5-6% in H1 and 6.2% in Q3.
Question:
Q.1 The Reserve Bank of India, RBI in its sixth bi-monthly Monetary Policy for FY 19-20 has projected the GDP growth for FY 2020-21 at ____________?a. 5%
b. 5.4%
c. 6%
d. 6.6%
