Economy & Business MCQs

As of September 2026, the RBI's Monetary Policy Committee (MPC) decided to keep the policy repo rate unchanged at 6.50% to allow the ongoing transmission of monetary policy actions to permeate the economy.

A robust manufacturing sector typically drives job creation, boosts overall economic output, and contributes to GDP growth.

The Purchasing Managers' Index (PMI) is a widely used economic indicator that provides an indication of business conditions in the manufacturing and services sectors.

The provided topic states that India's manufacturing sector recorded strong growth in Q2 2026.

Keeping the repo rate stable, especially at a level aimed at managing inflation, suggests the RBI is focused on controlling inflation and ensuring price stability.

The Monetary Policy Committee (MPC) is mandated by the RBI Act, 1934, to determine the policy repo rate required to meet the inflation target.

The RBI's Monetary Policy Committee (MPC) in its September 2026 meeting decided to keep the policy repo rate unchanged at 6.5%.

When inflation eases, the prices of goods and services rise at a slower rate, which means that consumers' money can buy more, thereby increasing their purchasing power.

The Government of India, in consultation with the RBI, has set a retail inflation target of 4% with a tolerance band of +/- 2%, meaning the target range is 2% to 6%. This framework was extended for another five years until March 31, 2026, and is expected to continue.

The Consumer Price Index (CPI) is the primary measure of retail inflation in India, reflecting changes in the prices of goods and services purchased by households.