Current Affairs Quiz

Q. Consider the following statements vis-à-vis policy stance of RBI:

  1. Under the Neutral stance, RBI has flexibility to increase or decrease the Repo Rate or Policy rate.
  2. Accommodative stance would mean RBI would keep the policy rate constant or increase it.

Codes:

(a) Only 1 (b) Only 2

(c) Both 1 and 2 (d) Neither 1 nor 2

Ans: (a)

Explanation

RBI has recently reduced the Policy Rate (Repo Rate) by 25 basis points and has stated that it has moved to a ‘Neutral Stance’.

What is Neutral Stance and Accommodative Stance of RBI?

  • Under the Neutral Stance, RBI has flexibility to increase or decrease ....
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