Which of the following statement is/are correct with reference to the monetary policy transmission?

A. The repo rate has been cut by 115 bps since March 2020.

B. Weighted Average Domestic Term Deposit Rate increased by 81 bps during 2020-21.

C. Both A & B

D. None of these

Explanation:

Monetary policy was significantly eased from March 2020 onwards owing to the unprecedented Covid-19 pandemic and remained accommodative in 2020, said the Economic Survey 2020-21. The repo rate has been cut by 115 bps since March 2020, with 75 bps cut in first Monetary Policy Committee (MPC) meeting in March 2020 and 40 bps cut in second meeting in May 2020. Similarly, the Weighted Average Domestic Term Deposit Rate declined by 81 bps during the same period.