Economy & Business MCQs

The RBI's decision to hold the repo rate steady is primarily driven by the need to manage and control inflation, which remains a key concern.

The RBI's Monetary Policy Committee, in its recent meeting, decided to keep the policy repo rate unchanged due to persistent inflation concerns.

The IMF's analysis typically points to strong domestic demand and continued investment as key contributors to India's economic expansion.

The International Monetary Fund (IMF) has projected a robust GDP growth rate for India for the fiscal year 2026-27.

The IMF's latest projections for India's GDP growth in FY27 are robust, estimating it at 7.3%. This reflects strong domestic demand and investment.

The RBI's mandate is to keep inflation within the target of 4% (+/- 2%), and its current monetary policy stance is aimed at ensuring this target is met amidst global inflationary pressures.

Ongoing geopolitical tensions and their impact on global supply chains continue to pose upside risks to inflation, influencing the RBI's cautious monetary policy stance.

Given persistent global inflation concerns and the need to anchor inflation expectations, the RBI's Monetary Policy Committee (MPC) decided to keep the repo rate unchanged at 6.50% in its latest review.

A robust monsoon season, leading to better agricultural output, is considered a significant upside risk that could boost rural demand and overall GDP growth in Q2 FY27.

The services sector, encompassing IT, financial services, and trade, is consistently projected to be the primary driver of India's GDP growth in Q2 FY27.