Statement: However, the market participants are eagerly waiting for a possible change in GDP growth forecast, inflation target for FY17, along with the RBI's commentary on foreign exchange reserves as around 30 billion of foreign currency non-resident bank deposits are maturing in Septembe

Question

Statement: However, the market participants are eagerly waiting for a possible change in GDP growth forecast, inflation target for FY17, along with the RBI's commentary on foreign exchange reserves as around 30 billion of foreign currency non-resident bank deposits are maturing in September. In its April review, the RBI had slashed the repo rate, the rate at which banks borrow from the central bank, by 0.25 percent to 6.50 percent, to a more than five-year low. Since January 2015, the RBI has cut its repo rate by 150 basis points or 1.5 percent. Question: Which of the following negates the above steps taken by the RBI?

Accepted Answer

None of these.. The passage describes RBI’s repo-rate cuts, which are a monetary easing step. Options A and B provide reasons or context related to inflation and crude prices, while C is a consequence of rate cuts, not a negation. Hence, none of the given statements directly negates the RBI’s steps.

Solution

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