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      Question

      The RBI's MPC maintained the policy repo rate at 5.25%

      in its June 2026 meeting and retained the neutral stance. The MPC projected real GDP growth for 2026-27 at:
      A 7.4% Correct Answer Incorrect Answer
      B 7.0% Correct Answer Incorrect Answer
      C 6.6% Correct Answer Incorrect Answer
      D 6.2% Correct Answer Incorrect Answer
      E 5.9% Correct Answer Incorrect Answer

      Solution

      The RBI MPC's June 3–5, 2026 resolution projected real GDP growth for 2026-27 at 6.6%, with quarterly estimates of Q1: 6.6%, Q2: 6.3%, Q3: 6.5%, Q4: 6.8%. This is lower than FY26's 7.4% FAE, primarily reflecting headwinds from: (1) the prolonged West Asia conflict and elevated global energy prices; (2) sub-normal southwest monsoon forecast; (3) global supply chain disruptions; and (4) moderated global demand. Despite these challenges, domestic private consumption, government capex, and services sector strength were expected to sustain growth above 6.5%.

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