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      Question

      As per the RBI’s 1st Bi-monthly Monetary Policy of

      FY27, at what rate did the MPC keep the repo rate under the Liquidity Adjustment Facility (LAF)?
      A 5.00% Correct Answer Incorrect Answer
      B 5.25% Correct Answer Incorrect Answer
      C 5.50% Correct Answer Incorrect Answer
      D 6.00% Correct Answer Incorrect Answer
      E 6.25% Correct Answer Incorrect Answer

      Solution

      In the 1st Bi-monthly Monetary Policy of FY27, the MPC kept the repo rate unchanged under the Liquidity Adjustment Facility (LAF) at 5.25% and maintained a ‘Neutral’ policy stance, citing heightened uncertainty after the West-Asia conflict which drove crude prices sharply higher, weakened the rupee, and disrupted trade supply chains. Consequently, the MPC retained the Standing Deposit Facility (SDF) rate at 5.00% and the Marginal Standing Facility (MSF) rate and the Bank Rate at 5.50%.

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