RBI Stuns Bond Market With Surprise India Rate Hike

The transcript discusses the need to maintain macroeconomic and financial stability while adapting to dynamic changes. The Monetary Policy Committee (MPC) held an off-cycle meeting to reassess inflation and growth dynamics, leading to a unanimous decision to increase the policy repo rate by 40 basis points to 4.40%. The standing deposit facility rate was adjusted to 4.15%, and the marginal standing facility rate and bank rate to 4.65%. The MPC aims to remain accommodative, focusing on withdrawing accommodation to keep inflation within target while supporting growth.

What is the primary focus of the speaker in the initial part of the transcript?

• Discussing the global economic crisis

• Emphasizing the need for macroeconomic stability

• Announcing a new economic policy

• Criticizing past economic decisions

Why did the Monetary Policy Committee decide to hold an off-cycle meeting in May 2022?

• To evaluate the impact of global events

• To announce a change in leadership

• To reassess inflation growth dynamics

• To discuss new economic policies

What was the outcome of the MPC's assessment in May 2022?

• A decrease in the policy repo rate

• An increase in the policy repo rate by 40 basis points

• A decision to hold another meeting

• No change in the policy repo rate

What is the new policy repo rate set by the MPC?

• 4.00%

• 4.20%

• 4.60%

• 4.40%

What is the MPC's stance on accommodation following the rate adjustment?

• To eliminate accommodation entirely

• To increase accommodation

• To remain accommodative while withdrawing accommodation

• To maintain the same level of accommodation