RBI's Patel Says Rates Increased to Curb Inflation: Statement

The transcript discusses the global and domestic economic conditions, highlighting sustained but uneven global growth, risks from oil prices, trade tensions, and financial conditions. It notes rising inflation in major economies and unsettled financial markets. Domestically, the Monetary Policy Committee (MPC) observes rising retail inflation and projects future inflation rates. Risks include crude oil volatility, financial turbulence, and fiscal slippage. Economic activity shows signs of recovery, with industrial growth and investment activity remaining firm. The MPC decides to increase the policy rate while maintaining a neutral stance, aiming for a 4% inflation target.

What are the main risks to global economic growth mentioned in the first section?

• Decreasing energy prices and stable financial conditions

• Increasing global cooperation and trade agreements

• Volatile oil prices and trade tensions

• Rising food prices and currency stability

In the second section, what is noted as a significant factor contributing to domestic inflation?

• Elevated input costs and wage growth

• Stable currency exchange rates

• Muted food inflation

• Decreasing energy prices

What is the projected inflation rate for the first quarter of 2019-2020, excluding the HRA impact?

• 5%

• 5.5%

• 4.4%

• 4.8%

Which factor is expected to boost rural demand according to the third section?

• Decline in industrial growth

• Reduction in trade deficit

• Increase in MSPs of kharif crops

• Decrease in foreign direct investment

What is the GDP growth projection for the first quarter of 2019-2020?

• 7.6%

• 7.4%

• 7.5%

• 7.3%

What decision did the committee make regarding the policy rate in the final section?

• Decrease by 25 basis points

• Increase by 25 basis points

• Increase by 50 basis points

• Maintain the current rate

What are the global risks that could impact growth as mentioned in the final section?

• Stable geopolitical conditions and trade agreements

• Decreasing oil prices and stable trade relations

• Rising trade protectionism and geopolitical tensions

• Increasing global cooperation and reduced tariffs