Election Day- Use Code DEMOCRACY24

Register Now

RBI hints at an Increase in Policy Rates in the Next MPC Meeting

Published on May 23, 2022
Current Context: RBI Governor Shaktikanta Das has said that they were looking for rate hikes in the upcoming few meetings and they will also come up with a new inflation rate.
RBI hints at an Increase in Policy Rates in the Next MPC Meeting
  • As a part of that RBI hiked the repo rate by 40 basis points to 4.4%, and is expected to increase the key lending rates again in the June meeting.
  • Both fiscal and monetary authorities are brainstorming to control inflation which has already stayed above the central bank's mandated target band of 2-6%.
  • Apart from that RBI along with the repo rate they have also raised the cash reserve ratio (CRR) by 50 basis points to 4.5% to observe the excess liquidity in the banking system.
  • It has been huge pressure on both the central government and RBI as the retail inflation already touched the sky-high i.e eight-year high in April.
  • RBI considers the reason behind the eight-year high retail inflation was due to the fiscal steps taken by the government like tax cuts, subsidies, etc.


Q.1 RBI has to increase Repo Rate by how many basis points?
a. 51 basis points
b. 40 basis points
c. 32 basis points
d. 20 basis points
ebook store

About us

ramandeep singh

Ramandeep Singh, your guide to banking and insurance exams. With 14 years of experience and 5000+ selections, Ramandeep understands the path to success, having transitioned himself from Dena Bank and SBI. He's passionate about helping you achieve your banking and insurance dreams.

  • Follow me:
Close Menu
Close Menu