Economy & Business MCQs

The Repo Rate is the rate at which the RBI lends money to commercial banks. By adjusting this rate, the RBI influences the cost of borrowing for banks, which in turn affects lending rates for consumers and businesses, thereby managing inflation and liquidity.

Effective monetary policy actions by the RBI and stable or declining commodity prices are key drivers for bringing down inflation.

An easing of inflation to 4.5% suggests that price pressures are expected to moderate, moving closer to the RBI's medium-term target of 4%.

The RBI has projected that inflation will ease to 4.5% in FY25.

A 7.2% GDP growth forecast generally indicates expectations of moderate but steady economic expansion, reflecting resilience and growth potential.

The Reserve Bank of India (RBI) is the institution that has kept its GDP growth forecast for FY25 unchanged at 7.2%.

The RBI has maintained its projection for India's GDP growth at 7.2% for FY25.

The MPC decided to retain the Repo Rate at its existing level of 6.5%, indicating no change.

The Monetary Policy Committee (MPC) is entrusted with the task of setting the policy interest rates, including the Repo Rate.

The Monetary Policy Committee (MPC) has retained the Repo Rate at 6.5%.