Which of the following rates signals the RBIs long-term outlook on interest rates? [Allahabad Bank 2011]

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]

Which of the following rates signals the RBI’s long-term outlook on interest rates? [Allahabad Bank 2011]

A	Repo Rate
B	Reverse Repo Rate
C	Bank Rate
D	SLR

Explanation:

Detailed explanation-1: -Solution. Repo rate is the rate at which RBI lends to its clients generally against government securities.

Detailed explanation-2: -Interest Rate in India is expected to be 6.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the India Interest Rate is projected to trend around 6.00 percent in 2024, according to our econometric models.

Detailed explanation-3: -The current/ latest rates as per RBI Monetary Policy are: SLR 18.00%, CRR is 4.50%, MSF is 6.75%, Repo Rate is: 6.50%, Reverse Repo Rate is 3.35%, and Bank Rate 6.75%.

There is 1 question to complete.