On 6th April 2023, The six-member monetary policy committee headed by RBI Governor Shaktikanta Das announced a status quo on policy rates.
- The monetary policy committee has unanimously decided to keep the repo rate unchanged at 6.5 percent.
- The standing deposit facility SDF rate will remain stable at 6.25 percent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 percent.
- The pause in rate hike comes after six successive rate hikes.
- RBI has projected GDP growth for 2023-24 at 6.5 percent with risks evenly balanced.
- Inflation is expected to moderate to 5.2 percent.
- The next meeting of the Monetary Policy Committee would be held from the 6th to 8th of June 2023.
Question : What is the repo rate?
a) The rate at which banks lend to the RBI
b) The rate at which RBI borrows money from the banks
c) The rate at which RBI lends to banks
d) None of the above
Answer: c) The rate at which RBI lends to banks