RBI's Das Says 35 Basis-Point Cut Seen as 'Balanced'

The video discusses the Reserve Bank's decision to cut the policy repo rate by 35 basis points instead of the conventional 25. It explains the rationale behind this decision, considering the evolving macroeconomic outlook. The Reserve Bank has been proactive in its monetary policy since 2019, reducing the repo rate by 75 basis points and shifting its stance to accommodative. The MPC prioritizes boosting aggregate demand and private investment while maintaining inflation targets. The decision for a 35 basis points cut is seen as balanced, considering global and domestic developments.

What was the cumulative reduction in the policy repo rate by the Reserve Bank till the meeting discussed?

• 50 basis points

• 75 basis points

• 25 basis points

• 100 basis points

What stance did the Reserve Bank adopt after moving from a neutral stance?

• Conservative

• Restrictive

• Accommodative

• Aggressive

What is the primary focus of the MPC in the current meeting?

• Increasing interest rates

• Boosting aggregate demand

• Decreasing liquidity

• Reducing inflation

Why did the MPC consider a 25 basis point cut inadequate?

• It was not enough to address economic developments

• It was too aggressive

• It was already implemented

• It would increase inflation

What was the reason for not opting for a 50 basis point cut?

• It was considered excessive

• It would decrease inflation

• It was not enough

• It was already implemented