RBI's Priority Is to Keep Cost of Capital Low, UBS Says

The video discusses the RBI's unconventional QE strategy to manage the yield curve amidst rising debt-to-GDP concerns. It highlights the economic impact of the COVID-19 resurgence in India, particularly in Maharashtra, and the implications for fiscal policy and budgetary constraints. The RBI's proactive monetary policy aims to maintain low capital costs, with expectations of no change in the repo rate. The video also covers currency depreciation risks and the need for complementary fiscal and monetary policies to support economic recovery, projecting GDP growth between 10.5% and 12.5% for FY22.

What is the primary goal of the RBI's new strategy in the secondary market?

• To increase inflation

• To raise interest rates

• To decrease public debt

• To flatten the yield curve

Which Indian state accounted for a significant portion of new COVID-19 cases during the resurgence?

• Tamil Nadu

• Maharashtra

• Gujarat

• Karnataka

What is the expected stance of the RBI on the repo rate throughout FY22?

• Keep the repo rate on hold

• Decrease the repo rate

• Increase the repo rate

• Abolish the repo rate

What is a key factor influencing the timing of economic normalization in India?

• Stock market performance

• Foreign direct investment

• Pace of vaccination

• Global oil prices

What is the expected movement of the INR in the near term according to the transcript?

• Weaken towards 75.5

• Remain stable at 74

• Strengthen to 70

• Strengthen to 72

What is the estimated range of India's GDP growth for FY22 according to different sources?

• 10.5% to 12.5%

• 13% to 15%

• 8% to 10%

• 5% to 7%

What is the role of fiscal policy in India's economic recovery post-COVID-19?

• To increase taxes

• To focus solely on exports

• To complement monetary policy

• To reduce government spending