Reserve Bank of India Governor on 50 Basis-Point Rate Hike, Economy

The transcript discusses the MPC's decision to increase the policy repo rate by 50 basis points to 5.4% to manage inflation and support growth. It highlights the resilience of domestic economic activity, despite global challenges, and the need for further withdrawal of monetary accommodation. The assessment of growth shows signs of broadening economic activity, with improvements in urban demand and investment. Inflation remains a concern, with projections indicating it will stay above the target in the near term, influenced by global and domestic factors.

What was the new policy repo rate set by the MPC?

• 5.8%

• 5.6%

• 5.4%

• 5.0%

Which facility rate was adjusted to 5.15% following the MPC's decision?

• Repo Rate

• Standing Deposit Facility

• Marginal Standing Facility

• Bank Rate

What was the primary reason for the MPC's decision to increase the policy repo rate?

• To increase exports

• To reduce unemployment

• To control inflation

• To boost economic growth

Which sector showed mixed signals in demand according to the growth assessment?

• Urban demand

• Rural demand

• Industrial demand

• Export demand

What was the capacity utilization in the manufacturing sector in Q4 of 21-22?

• 73.7%

• 75.3%

• 80.0%

• 78.5%

What is the projected real GDP growth for Q1 of 22-23?

• 16.2%

• 6.2%

• 4.0%

• 7.2%

What global factor is NOT mentioned as a headwind for the domestic economy?

• Global recession risks

• Rising oil prices

• Global financial market volatility

• Geopolitical tensions

For how many consecutive months did headline CPI inflation remain at or above the upper tolerance level of 6% by June 2022?

• 4 months

• 5 months

• 6 months

• 7 months

Which factor is NOT mentioned as influencing the inflation trajectory?

• Geopolitical developments

• International commodity market dynamics

• Domestic tax policies

• Monsoon distribution

What is the projected inflation rate for Q4 of 22-23?

• 5.8%

• 6.4%

• 7.1%

• 6.7%