Monetary Policy Committee (MPC) of RBI has increased the policy Repo Rate under the liquidity adjustment facility (LAF) by 25 basis points to.....percent in the Second Bi-monthly Monetary Policy Statement (2018-19).

BANKING GENERAL KNOWLEDGE

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

Monetary Policy Committee (MPC) of RBI has increased the policy Repo Rate under the liquidity adjustment facility (LAF) by 25 basis points to____percent in the Second Bi-monthly Monetary Policy Statement (2018-19).

A	5.75 percent
B	6.25 percent
C	6.50 percent
D	6.75 percent

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 (February 8, 2023) decided to: Increase the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points to 6.50 per cent with immediate effect.

Detailed explanation-2: -Reserve Bank of India governor Shaktikanta Das, in the briefing after the monetary policy meeting, said that the real gross domestic product (GDP) growth for the financial year 2023 is estimated to be at 6.8 percent.

Detailed explanation-3: -Here’s what the Indian central bank chief announced. RBI Monetary Policy Committee Meeting December 2022: The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) on Wednesday hiked the repo rate by 35 basis points (bps) to 6.25 per cent with immediate effect, RBI Governor Shaktikanta Das announced.

Detailed explanation-4: -The Marginal Standing Facility (MSF) rate and reverse repo rate determine the corridor for the daily movement in the weighted average call money rate.

Detailed explanation-5: -LAF has two components-repo (repurchase agreement) and reverse repo. When banks need liquidity to meet its daily requirement, they borrow from RBI through repo.

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