Reserve Bank of India Raises Repurchase Rate by Quarter Point to 6.5%

The video discusses the rapid shifts in global monetary policies due to overlapping economic shocks, contrasting with the stability of the Great Moderation era. It highlights the challenges faced by emerging markets, particularly India, in balancing economic growth and inflation control. The Monetary Policy Committee's recent decisions, including a repo rate increase, are explained in the context of global economic conditions. Despite global volatility, India's economy shows resilience, supported by government initiatives and robust demand, though external uncertainties remain a concern.

What major challenge do emerging market economies face in the current global environment?

• Balancing economic activity and inflation control

• Enhancing technological advancements

• Increasing foreign investments

• Reducing trade barriers

What decision did the MPC make regarding the policy repo rate in February?

• Increase by 50 basis points

• Maintain the current rate

• Decrease by 25 basis points

• Increase by 25 basis points

Which organization revised the global growth estimates upwards for 2022 and 2023?

• World Trade Organization

• United Nations

• International Monetary Fund (IMF)

• World Bank

What is the estimated real GDP growth for India in 2022-23 according to the NSO?

• 6%

• 7%

• 5%

• 8%

Which factor is NOT mentioned as supporting economic activity in India?

• Weak external demand

• Improving rural demand

• Robust credit expansion

• Higher Rabi acreage

What is the expected trend for inflation in India for 2023-24?

• Below 4% target

• Above 4% target

• Unchanged from previous year

• At 4% target

What is the primary goal of the MPC's monetary policy action?

• Boost export growth

• Anchor inflation expectations

• Increase foreign investments

• Reduce government spending