Which of the following statements is/are correct with reference to the Monetary Policy Committee (MPC)?

Which of the following statements is/are correct with reference to the Monetary Policy Committee (MPC)?

A. MPC recently decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 4.0 per cent.

B. The MPC also decided to continue with the accommodative stance as long as necessary to revive and sustain growth on a durable basis and continue to mitigate the impact of COVID-19 on the economy.

C. Both A & B

D. None of these

Explanation:

The Monetary Policy Committee (MPC) at its meeting recently decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 4.0 per cent on the basis of an assessment of the current and evolving macroeconomic situation. The MPC also decided to continue with the accommodative stance as long as necessary to revive and sustain growth on a durable basis and continue to mitigate the impact of COVID-19 on the economy, while ensuring that inflation remains within the target going forward.