Current context: RBI Governor Shaktikanta Das has announced economic measures on 27th March 2020, as decided by the Monetary Policy Committee (MPC), to deal with the hardship caused due to the outbreak of COVID-19.
a. 4.8%
b. 4.4%
c. 4.2%
d. 4.1%
- The ‘paramount objective’ behind the measures is keeping finance flowing in the lockdown due to coronavirus (COVID-19) outbreak.
- The measures will provide a total liquidity injection of Rs 3.74 lakh crore to the system in the current scenario.
- The following measures were announced by the RBI governor:
- Cut in benchmark interest rate, Repo Rate by 75 basis points to 4.4%.
- RBI has reduced the Cash Reserve Ratio (CRR) of all banks by 100 basis points to 3% of Net demand and time liabilities (NDTL)with effect from 28th March 2020 for 1 year.
- RBI will maintain an accommodative stance.
- RBI has cut Liquidity Adjustment Facility by 90 bps to 4 %.
- RBI has increased the Marginal Standing Facility (MSF) limit to 3% from 2% with immediate effect up to 30th June 2020.
- Reverse Repo Rate has been reduced by 90 basis points to 4%.
- RBI will conduct auctions of targeted term repos of up to three years tenor, for a total of up to Rs 1 trillion, at a floating rate linked to the repo rate.
Question:
Q.1 The RBI has recently decided to cut the Repo Rate by 75 basis points to ________?a. 4.8%
b. 4.4%
c. 4.2%
d. 4.1%
