RBI Cuts Policy Rate to 5.15%

The video discusses a 25 basis point rate cut by the Reserve Bank of India, marking the sixth consecutive cut this year, reducing borrowing costs by 135 basis points. It highlights India's declining economic growth and inflation rates, which are below the RBI's target. The video also examines the impact of a recent corporate tax cut on the fiscal deficit and the potential effects on market rates and the banking system's health.

What is the total reduction in basis points in borrowing costs by the Reserve Bank of India this year?

• 135 basis points

• 100 basis points

• 150 basis points

• 200 basis points

What was the growth rate of India in fiscal 2018?

• 6%

• 9%

• 8%

• 7%

What is the Reserve Bank of India's medium-term inflation target?

• 4%

• 5%

• 3%

• 2%

What recent government action is mentioned as a measure to boost demand?

• Increase in public spending

• Reduction in corporate taxation

• Increase in interest rates

• Introduction of new subsidies

What are some of the challenges facing the Indian banking system?

• Lack of digital infrastructure

• Excessive foreign debt

• Bad loans and shadow banking crisis

• High inflation rates