CLAT GurukulSamudraManthan
← Topics 0/10 answered

Topic 171 · Economy, Budget & Banking

RBI MPC holds repo at 5.25%

10 MCQs · tap an option to check it · All answers

Revise the 12 points first Book 1 RATNA
  1. Core Trigger: On 8 April 2026 the MPC, at its 60th meeting, unanimously held the repo rate at 5.25% with a neutral stance.
  2. Policy Outlook: The RBI projected 2026-27 growth at 6.9% and CPI inflation at 4.6%.
  3. Current Head: Sanjay Malhotra, RBI Governor, chairs the MPC; Deputy Governor Poonam Gupta is a member.
  4. Rate Corridor: The SDF rate is 5.00%; the MSF rate and Bank Rate are 5.50%.
  5. Later Holds: The MPC held again on 5 June and 5 August 2026.
  6. Stakeholders: External members are Nagesh Kumar, Saugata Bhattacharya and Ram Singh; the 4% inflation target, 2-6% band, continues to 2031.
  7. India Link: Inflation edged above the 4% target by August 2026, expected to peak in the third quarter of 2026-27.
  8. Headquarters: The Reserve Bank of India has its central office in Mumbai.
  9. Founded: The first MPC was constituted on 29 September 2016; repo reached 5.25% by a 25 basis point cut on 5 December 2025.
  10. Landmark Agreement: The Monetary Policy Framework Agreement of 20 February 2015 formally adopted flexible inflation targeting.
  11. Statute: Section 45ZB of the RBI Act, 1934 creates the six-member MPC; section 45ZA sets the target.
  12. Doctrine: Failure means inflation above 6% or below 2% for three consecutive quarters; the Governor has a casting vote.
Question 1 of 10

Consider: 1. The MPC held the repo rate at 5.25% on 8 April 2026. 2. Its stance was accommodative. Which is/are correct?

Show answer

Answer: (A) Only 1

Core Trigger: On 8 April 2026 the MPC, at its 60th meeting, unanimously held the repo rate at 5.25% with a neutral stance.From Book 1 RATNA, topic 171, point 1

Question 2 of 10

What 2026-27 GDP growth did the RBI project?

Show answer

Answer: (A) 6.9%

Policy Outlook: The RBI projected 2026-27 growth at 6.9% and CPI inflation at 4.6%.From Book 1 RATNA, topic 171, point 2

Question 3 of 10

Who chairs the Monetary Policy Committee?

Show answer

Answer: (D) The RBI Governor

Current Head: Sanjay Malhotra, RBI Governor, chairs the MPC; Deputy Governor Poonam Gupta is a member.From Book 1 RATNA, topic 171, point 3

Question 4 of 10

In the April 2026 corridor, the MSF rate and Bank Rate stood at what?

Show answer

Answer: (C) 5.50%

Rate Corridor: The SDF rate is 5.00%; the MSF rate and Bank Rate are 5.50%.From Book 1 RATNA, topic 171, point 4

Question 5 of 10

Besides 5 June, on which date did the MPC hold rates again?

Show answer

Answer: (D) 5 August 2026

Later Holds: The MPC held again on 5 June and 5 August 2026.From Book 1 RATNA, topic 171, point 5

Question 6 of 10

Until which year does the 4% inflation target with a 2-6% band continue?

Show answer

Answer: (A) 2031

Stakeholders: External members are Nagesh Kumar, Saugata Bhattacharya and Ram Singh; the 4% inflation target, 2-6% band, continues to 2031.From Book 1 RATNA, topic 171, point 6

Question 7 of 10

Where is the RBI's central office?

Show answer

Answer: (B) Mumbai

Headquarters: The Reserve Bank of India has its central office in Mumbai.From Book 1 RATNA, topic 171, point 8

Question 8 of 10

On which date was the first MPC constituted?

Show answer

Answer: (C) 29 September 2016

Founded: The first MPC was constituted on 29 September 2016; repo reached 5.25% by a 25 basis point cut on 5 December 2025.From Book 1 RATNA, topic 171, point 9

Question 9 of 10

The Monetary Policy Framework Agreement of 20 February of which year adopted flexible inflation targeting?

Show answer

Answer: (A) 2015

Landmark Agreement: The Monetary Policy Framework Agreement of 20 February 2015 formally adopted flexible inflation targeting.From Book 1 RATNA, topic 171, point 10

Question 10 of 10

Consider: 1. Section 45ZB creates a nine-member MPC. 2. The Governor has a casting vote. Which is/are correct?

Show answer

Answer: (B) Only 2

Statute: Section 45ZB of the RBI Act, 1934 creates the six-member MPC; section 45ZA sets the target.From Book 1 RATNA, topic 171, point 11

Answer all ten to see your score

0 of 10 answered · 0 correct

See all answers →Next topic →

Track your weak chapters across all 380 topics — sign in to the free app.

Android appWeb app (sign-in needed)

Open this topic in the app (sign-in needed)