RBI MPC Keeps Repo Rate Unchanged at 5.50%
In News
What Happened
Why It Matters
Background
History & Context
What Changed
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Real GDP Growth Forecast: BEFORE, the estimate for FY 2025-26 was lower, but NOW it has been upwardly revised to 6.8%.
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CPI Inflation Projection: BEFORE, the inflation expectation was higher, but NOW it has been downwardly revised to 2.6% for FY 2025-26.
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Policy Rate and Stance: BEFORE the previous meeting, the rate and stance were different, but NOW the repo rate is strictly maintained at 5.50% with a 'neutral' stance for the second consecutive time.
Prelims Angle
NCERT Connection
Practice Questions
Q1
Correct Statement(s)Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC) and its policy stances? 1. The MPC is responsible for fixing the benchmark policy interest rate (repo rate) to contain inflation within the specified target level. 2. A 'neutral' monetary policy stance indicates that the central bank has the flexibility to either raise or lower interest rates depending on upcoming economic data.