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Reserve Bank of India’s (RBI) 1st Bi-monthly Monetary Policy for the Financial Year 2024-25

Published on April 05, 2024
Current Context: The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) met and released the 1st Bi-monthly Monetary Policy of Financial Year 2024-25 (FY25) on April 5, 2024.
Reserve Bank of India’s (RBI) 1st Bi-monthly Monetary Policy for the Financial Year 2024-25
  • GDP Growth: The RBI’s Monetary Policy Committee (MPC) has projected India’s real Gross Domestic Product (GDP) growth at 7% for FY25. The quarterly breakdown is as follows:
    • Q1 (April-June): 7.1%
    • Q2 (July-September): 6.9%
    • Q3 (October-December): 7%
    • Q4 (January-March): 7%
  • Policy Rates: The MPC kept the policy rates unchanged. Here are the details:
    • Policy Repo Rate: 6.50%
    • Fixed Reverse Repo Rate: 3.35%
    • Standing Deposit Facility (SDF) Rate: 6.25%
    • Marginal Standing Facility (MSF) Rate: 6.75%
    • Bank Rate: 6.75%
    • Cash Reserve Ratio (CRR): 4.50%
    • Statutory Liquidity Ratio (SLR): 18%
  • Inflation: The Consumer Price Index (CPI) inflation or retail inflation is projected at 4.5% for FY25. The quarterly breakdown is as follows:
    • Q1: 4.9%
    • Q2: 3.8%
    • Q3: 4.6%
    • Q4: 4.5%
  • Forex Reserves: India’s Foreign Exchange (Forex) Reserves hit a new high for the third consecutive week, reaching USD 645.58 billion by the end of the week on March 29, 2024.
  • The stance of the policy is to focus on withdrawal of accommodation to ensure that inflation progressively aligns with the target, while supporting growth.

Question:

Q.1 What is the Policy Repo Rate as per the 1st Bi-monthly Monetary Policy of FY25?
a. 6.25%
b. 6.50%
c. 6.75%
d. 7.00%
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