Consider the following statements regarding the Reserve Bank of India's monetary policy decisions in December 2024:
1. The RBI reduced the policy repo rate to 4.0% to inject liquidity into the economy.
2. The Monetary Policy Committee maintained a 'neutral' policy stance.
Which of the statements given above is/are correct?

Question

Accepted Answer

B. 2 only — Statement 1 is incorrect because the RBI kept the repo rate unchanged at 6.5% and instead reduced the Cash Reserve Ratio (CRR) to 4.0% to inject liquidity. Statement 2 is correct, as the MPC retained the 'neutral' stance adopted in its previous meeting.

RBI Keeps Repo Rate Unchanged at 6.5%

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