Monetary Policy Committee has decided to keep the policy repo rate in 1st Bi-Monthly Monetary Policy Statement 2017-18 under the liquidity adjustment facility (LAF) unchanged at

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	6.50%
B	6.25%
C	6.75%
D	6.00%

Explanation:

Detailed explanation-1: -On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today (September 30, 2022) decided to: Increase the policy repo rate under the liquidity adjustment facility (LAF) by 50 basis points to 5.90 per cent with immediate effect.

Detailed explanation-2: -Accordingly, the MPC decided to increase the policy repo rate by 25 basis points to 6.50 per cent. The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth.

Detailed explanation-3: -The MPC determines the policy repo rate required to achieve the inflation target. The MPC is required to meet at least four times in a year. The quorum for the meeting of the MPC is four members.

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