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Monetary Policy and Fiscal Policy
What is monetary policy?
Monetary policy refers to the actions taken by the Reserve Bank of India (RBI) to regulate money supply, credit availability, and interest rates to achieve macroeconomic objectives such as price stability and economic growth.
What is the inflation target currently mandated by the Government of India for the RBI?
4% with a tolerance band of 2% to 6%.
What is the primary objective of monetary policy in India?
The primary objective of monetary policy in India is to maintain price stability while keeping in mind the objective of growth, as mandated under the RBI Act after the 2016 amendment.
What is the Policy Repo Rate used for by the RBI?
Rate at which RBI lends overnight funds to banks.
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