Reading Comprehension – Test 64

The Given Editorial is accompanied by a set of questions based on the information given in it. Answer the following questions according to what is stated or implied in the Editorial.

THE RBI has chosen broadly to maintain the status quo despite there being many strong reasons for a repo rate cut - low inflation, a slower-than-expected GDP growth, little possibility of oil prices spiralling beyond the comfort zone, a normal monsoon forecast auguring well for the country's beleaguered farm sector and the government pitching for a reduction in the cost of corporate borrowings to perk up the sluggish investment sentiment. If the RBI Governor-led Monetary Policy Committee has not yielded to pressure from Finance Minister Arun Jaitley for lowering interest rates, it is not as much an assertion of the RBI autonomy as an acknowledgment of a systemic compulsion. <br><br> There is already excessive liquidity in the system - estimated at more than 60 billion. After demonetisation banks have more cash at hand than they know where to park it profitably. The demand from the corporate sector is negligible. Some of the major corporate houses are struggling to come out of the existing loan burden. As the last quarter corporate results indicate, the economic scenario inside and outside the country is not rewarding enough. With bad loans weighing them down, government banks too are hesitant in making risky advances. As a result, private investment is not happening and, as Dr Manmohan Singh has pointed out, the economy is running on one engine - that of public spending. The government view - also shared by some private experts - is that the harm done by demonetisation is temporary and the economy would soon bounce back. <br><br> In its last monetary policy review in April, the Reserve Bank had moved its policy stance from "accommodative" to "neutral" and left its benchmark lending rate unchanged for the third consecutive time at 6.25 per cent due to an "upside risk to inflation". That risk has abated but there is another significant reason for the RBI's wait-and-watch approach. The central bank would like to assess the impact of the GST rollout, scheduled in July, on inflation before taking a fresh call on interest rates. That is reasonable enough, even as critics call RBI Governor Urjit Patel more hawkish than his predecessor, Raghuram Rajan. <br><br><br> Presently the repo rate is?

The Given Editorial is accompanied by a set of questions based on the information given in it. Answer the following questions according to what is stated or implied in the Editorial.

THE RBI has chosen broadly to maintain the status quo despite there being many strong reasons for a repo rate cut - low inflation, a slower-than-expected GDP growth, little possibility of oil prices spiralling beyond the comfort zone, a normal monsoon forecast auguring well for the country's beleaguered farm sector and the government pitching for a reduction in the cost of corporate borrowings to perk up the sluggish investment sentiment. If the RBI Governor-led Monetary Policy Committee has not yielded to pressure from Finance Minister Arun Jaitley for lowering interest rates, it is not as much an assertion of the RBI autonomy as an acknowledgment of a systemic compulsion. <br><br> There is already excessive liquidity in the system - estimated at more than 60 billion. After demonetisation banks have more cash at hand than they know where to park it profitably. The demand from the corporate sector is negligible. Some of the major corporate houses are struggling to come out of the existing loan burden. As the last quarter corporate results indicate, the economic scenario inside and outside the country is not rewarding enough. With bad loans weighing them down, government banks too are hesitant in making risky advances. As a result, private investment is not happening and, as Dr Manmohan Singh has pointed out, the economy is running on one engine - that of public spending. The government view - also shared by some private experts - is that the harm done by demonetisation is temporary and the economy would soon bounce back. <br><br> In its last monetary policy review in April, the Reserve Bank had moved its policy stance from "accommodative" to "neutral" and left its benchmark lending rate unchanged for the third consecutive time at 6.25 per cent due to an "upside risk to inflation". That risk has abated but there is another significant reason for the RBI's wait-and-watch approach. The central bank would like to assess the impact of the GST rollout, scheduled in July, on inflation before taking a fresh call on interest rates. That is reasonable enough, even as critics call RBI Governor Urjit Patel more hawkish than his predecessor, Raghuram Rajan. <br><br><br> The major reason for maintaining the status quo of Repo rate is?

The Given Editorial is accompanied by a set of questions based on the information given in it. Answer the following questions according to what is stated or implied in the Editorial.

THE RBI has chosen broadly to maintain the status quo despite there being many strong reasons for a repo rate cut - low inflation, a slower-than-expected GDP growth, little possibility of oil prices spiralling beyond the comfort zone, a normal monsoon forecast auguring well for the country's beleaguered farm sector and the government pitching for a reduction in the cost of corporate borrowings to perk up the sluggish investment sentiment. If the RBI Governor-led Monetary Policy Committee has not yielded to pressure from Finance Minister Arun Jaitley for lowering interest rates, it is not as much an assertion of the RBI autonomy as an acknowledgment of a systemic compulsion. <br><br> There is already excessive liquidity in the system - estimated at more than 60 billion. After demonetisation banks have more cash at hand than they know where to park it profitably. The demand from the corporate sector is negligible. Some of the major corporate houses are struggling to come out of the existing loan burden. As the last quarter corporate results indicate, the economic scenario inside and outside the country is not rewarding enough. With bad loans weighing them down, government banks too are hesitant in making risky advances. As a result, private investment is not happening and, as Dr Manmohan Singh has pointed out, the economy is running on one engine - that of public spending. The government view - also shared by some private experts - is that the harm done by demonetisation is temporary and the economy would soon bounce back. <br><br> In its last monetary policy review in April, the Reserve Bank had moved its policy stance from "accommodative" to "neutral" and left its benchmark lending rate unchanged for the third consecutive time at 6.25 per cent due to an "upside risk to inflation". That risk has abated but there is another significant reason for the RBI's wait-and-watch approach. The central bank would like to assess the impact of the GST rollout, scheduled in July, on inflation before taking a fresh call on interest rates. That is reasonable enough, even as critics call RBI Governor Urjit Patel more hawkish than his predecessor, Raghuram Rajan. <br><br><br> According to former PM the only engine on which the Indian economy is running?