RBI has released 6th Bi-Monthly Monetary Policy Statement in February 2019. In this statement, RBI has reduced the policy repo rate under the Liquidity Adjustment Facility (LAF) by.....basis points.

BANKING GENERAL KNOWLEDGE

Please wait while the activity loads.
If this activity does not load, try refreshing your browser. Also, this page requires javascript. Please visit using a browser with javascript enabled.

If loading fails, click here to try again

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

RBI has released 6th Bi-Monthly Monetary Policy Statement in February 2019. In this statement, RBI has reduced the policy repo rate under the Liquidity Adjustment Facility (LAF) by____basis points.

A	50 basis points
B	25 basis points
C	125 basis points
D	10 basis points

Explanation:

Detailed explanation-1: -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-2: -Highlights of RBI’s Bi-monthly Monetary Policy of 2022-23; Repo Rate raised to 6.25% in December 2022.

Detailed explanation-3: -Bank rate refers to the rate at which RBI provides long-term borrowings to its clients. A decrease in bank rate will make borrowing from RBI cheap which will eventually lead to an increase in the money supply in the market i.e. higher liquidity. Was this answer helpful?

Detailed explanation-4: -2. Consequently, the standing deposit facility (SDF) rate and marginal standing facility (MSF) rate stand adjusted to 6.00 per cent and 6.50 per cent respectively, with immediate effect. 3. All other terms and conditions of the extant LAF Scheme will remain unchanged.

There is 1 question to complete.