BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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5.50 percent
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5.75 percent
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6.25 percent
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6.00 percent
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Detailed explanation-1: -The Monetary Policy Committee The MPC determines the policy repo rate required to achieve the inflation target.
Detailed explanation-2: -A liquidity adjustment facility (LAF) is a monetary policy tool used in India by the Reserve Bank of India or RBI. The RBI introduced the LAF as part of the outcome of the Narasimham Committee on Banking Sector Reforms of 1998.
Detailed explanation-3: -As per the Reserve Bank of India Act (RBI), 1934, MPC is required to meet at least four times each year, to discuss the macroeconomic issues in the country, and take policy decisions to address those. This is the second time MPC has conducted an off-cycle meeting in 2022-23.
Detailed explanation-4: -5. On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today (December 7, 2022) decided to: Increase the policy repo rate under the liquidity adjustment facility (LAF) by 35 basis points to 6.25 per cent with immediate effect.