RBI Monetary Policy Key Highlights

Current Context: Six-member Monetary Policy Committee today announced the first Monetary Policy after the budget of this year.

• They unanimously voted to keep the repo rate unchanged at 4% and the reverse repo rate at 3.35%.
• The stance has been retained as accommodative.
• The projected GDP growth rate has been reduced to 7.2% for FY 23 from 7.8%.
• The CPI inflation projection retained has been increased to 5.7% for FY23 as against 4.5% earlier.
• RBI will manage excess liquidity of INR8.5lakh crore from the system from the beginning of this year.
• Normalized the Liquidity Adjustment Facility (LAF) corridor to the pre-pandemic level at 50 basis points.
• Standing Deposit Facility has been introduced at 3.75%.

Questions:

Q.1 In the Monetary Policy announced in the month of April, what is the revised projection of GDP growth rate for FY23 for India?
a. 7.8%
b. 7.6%
c. 7.4%
d. 7.2%

Q.2 What is the current repo rate as announced by MPC in April 2022?
a. 3.75%
b. 4%
c. 4.5%
d. 4.25%

Q.3 The Monetary Policy Committee has announced that excess liquidity of __ will be managed beginning this year.
a. INR 5 lakh crore
b. INR 7.5 lakh crore
c. INR 8.5 lakh crore
d. INR 6.5 lakh crore