CURRENT AFFAIRS

Detailed explanation-1: -5. On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today (April 8, 2022) decided to: keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 4.0 per cent.

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: -In September 2022, the Monetary Policy Committee (MPC) stated that the repo rate had been raised by 50 basis points to 5.90%. During its meeting, the MPC agreed to maintain the reverse repo rate at 3.35%. The Bank Rate and also the marginal standing facility rate have been changed to 5.15%.

Detailed explanation-4: -Reverse Repo rate is the rate at which the Reserve Bank of India borrows funds from the commercial banks in the country. In other words, it is the rate at which commercial banks in India park their excess money with Reserve Bank of India usually for a short-term.

Detailed explanation-5: -The RBI uses a reverse repo rate to maintain the cash flow in the economy. The reverse repo rate is 3.35 per cent per Monetary Policy 2023.