India's Central Bank Surprises With Interest Rate Pause

The transcript discusses the shift in global economic conditions, highlighting renewed turbulence due to banking sector issues and inflation concerns. Central banks are cautiously adjusting monetary policies. The Monetary Policy Committee (MPC) decided to keep the policy repo rate unchanged at 6.5% while remaining vigilant to act if necessary. The MPC aims to align inflation with targets while supporting growth. Despite some economic resilience, inflation remains a challenge. The MPC will continue to monitor the situation and adjust policies as needed.

What major shift occurred in the global economic narrative in March?

• A sudden increase in global GDP

• Renewed turbulence from the banking sector

• A decline in financial market optimism

• A significant decrease in inflation rates

What was the MPC's decision regarding the policy repo rate in April 2023?

• To eliminate it entirely

• To keep it unchanged at 6.5%

• To decrease it by 0.25%

• To increase it by 0.5%

What is the primary focus of the MPC's decision to pause the repo rate?

• To decrease economic growth

• To align inflation with targets while supporting growth

• To increase inflation

• To reduce financial market volatility

What is the current state of global inflation according to the transcript?

• It has reached the target levels

• It is moderating but remains above target

• It is decreasing rapidly

• It is stable and predictable

How have India's banking and financial sectors been described in the transcript?

• Overregulated and stagnant

• Declining and weak

• Healthy and orderly

• Unstable and volatile

What is the projected real GDP growth for India in 2022-23?

• 5%

• 6%

• 7%

• 8%

What is the MPC's stance on future actions regarding inflation?

• They will not take any further actions

• They will take necessary actions as required

• They will decrease the policy rate

• They will increase the policy rate