Das: RBI to Reduce Benchmark Repo Rate by 75 Basis Points

The transcript discusses the Reserve Bank of India's monetary policy decisions, including a reduction in the repo rate and adjustments to the reverse repo rate to encourage lending. It highlights the economic impact of COVID-19, emphasizing the need for financial stability and growth revival. The RBI's proactive measures to ensure market functioning and liquidity are outlined, along with the global and Indian economic outlook amid the pandemic. The importance of government measures to contain the virus's spread is also stressed.

What was the primary reason for the MPC's decision to reduce the policy repo rate?

• To encourage banks to lend more

• To increase inflation

• To decrease the Reserve Bank's funds

• To reduce government spending

What is the main goal of reducing the reverse repo rate?

• To encourage banks to lend to productive sectors

• To make it attractive for banks to deposit funds

• To increase the Reserve Bank's reserves

• To stabilize the stock market

What is the Reserve Bank's approach to dealing with the financial impact of COVID-19?

• Implementing only conventional measures

• Ignoring the financial market conditions

• Focusing solely on inflation control

• Using both conventional and unconventional measures

What is the Reserve Bank's role in ensuring financial stability during the pandemic?

• To focus only on international markets

• To halt all financial operations

• To monitor and calibrate operations for liquidity support

• To increase interest rates

What is the expected impact of COVID-19 on global economic activity?

• A near standstill

• An increase in global growth

• A rapid recovery

• A decrease in unemployment

Which sector in India is expected to show resilience despite the pandemic?

• Manufacturing

• Agriculture and allied activities

• Tourism

• Retail

What is the government's strategy to combat the spread of COVID-19?

• Reducing healthcare facilities

• Encouraging large gatherings

• Containing intensity, spread, and duration

• Increasing international travel