- The Committee held an unscheduled meeting in early May and voted unanimously for a 40 basis point repo rate hike due to an increase in April inflation.
- In addition to that CPI inflation also surged to a near-eight-year high of 7.79 percent in April which is beyond the 2-6 percent tolerance band.
- According to the poll it has also been estimated that MPC is likely to increase policy rates ranging from 25 basis points to at least 50 basis points.
- While the median of economists’ predictions points to a 40-basis-point rate hike on June 8 which equals to 4.80%.
Question:
Q.1 According to a recent poll the RBI is expected to increase the repo rate by ________ basis points.a. 50 basis points
b. 40 basis points
c. 30 basis points
d. 35 basis points
