Reserve Bank of India Raised Repo Rate by 50 Bps to 5.9%: Governor Das

The MPC decided to increase the policy repo rate by 50 basis points to 5.9% to address high inflation while supporting growth. The global economic outlook remains bleak with tightening financial conditions and recession fears. Despite global challenges, India's economic activity remains stable, supported by factors like GDP growth and capital expenditure. Inflation is elevated due to supply shocks and global market spillovers, but recent commodity price corrections may ease pressures. The MPC aims to withdraw monetary accommodation to anchor inflation expectations and support medium-term growth.

What was the new policy repo rate set by the MPC?

• 5.9%

• 5.5%

• 6.0%

• 6.5%

Which global factor is NOT mentioned as a challenge in the transcript?

• High inflation

• Currency depreciation

• Tightening financial conditions

• Political stability

What is the impact of the US dollar strengthening mentioned in the transcript?

• Increased global trade

• Lower inflation rates

• Improved economic growth

• Currency depreciation pressures

What was the real GDP growth in the first quarter as mentioned in the transcript?

• 2.5%

• 3.5%

• 4.0%

• 5.0%

What is one of the reasons for elevated consumer price inflation in India?

• Large adverse supply shocks

• Decreased domestic demand

• Stable global markets

• Increased foreign investments