RBI Cuts Repo Rate by 25 Basis Points

The RBI's Monetary Policy Committee has implemented a 25 basis point rate cut, aligning with market expectations. This marks the first consecutive rate cut since the committee's inception in 2016. The decision is influenced by a neutral policy stance, a GDP forecast of 7.2% for fiscal 2020, and inflation consistently below the RBI's 4% target. Economic indicators show a slowdown, prompting the RBI to support growth through lending. Future rate cuts depend on factors like monsoons, global growth, and oil prices, with upcoming elections also playing a crucial role.

What significant action did the RBI's Monetary Policy Committee take recently?

• Doubled the interest rate

• Increased the interest rate by 25 basis points

• Decreased the interest rate by 25 basis points

• Maintained the interest rate

What stance has the Monetary Policy Committee maintained?

• Aggressive

• Hawkish

• Neutral

• Dovish

What is the projected GDP growth for fiscal 2020 according to the committee?

• 7.5%

• 8.0%

• 7.2%

• 6.5%

What has been the recent trend in inflation relative to the RBI's target?

• Above the target

• Unpredictable

• Below the target

• Exactly at the target

Which factors will influence future rate cuts by the RBI?

• Political stability

• Monsoons, global growth, and oil prices

• Foreign exchange rates

• Stock market performance