RBI will Increase 25 basis Point Interest in Monetary Policy

Current Context: The Reserve Bank of India in the previous months has been raising benchmark rates from May 2022 to reduce inflation. Due to inflation, RBI will change the repo rates in the monetary policy committee.

• Inflation is largely effected by e the global supply chain and this was followed by the Russia-Ukraine war.
• RBI had raised the repo rate by 25 basis points to 6.50 per cent in the month of February.
• Retail inflation remained almost at the RBI tolerance band that is 6 per cent. The Reserve Bank of India will go for a 25 basis points hike in the monetary policy repo rate. It will be announced on April 6.
• To take into account various domestic and global factors, the Monetary Policy Committee (MPC) of the Reserve Bank will be meeting for three days from April 3rd to April 6th.
• The committee will discuss on two factors - firming up the next monetary policy for retail inflation and the recent action taken by central banks of the US Federal Reserve, European Central Bank and Bank of England will be taken into account.

Question:

Q.1 RBI will increase_________ basis point interest in monetary policy
a. 18
b. 34
c. 25
d. 23