Monetary Policy Framework Agreement
The GOI and RBI signed a Monetary Policy Framework Agreement, The objective is to primarily maintain price stability, while keeping in mind the objective of growth.
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Monetary Policy Committee(MPC)
The Monetary Policy Committee(MPC) determines the benchmark policy rate (repo rate) to restrain inflation within the particular target level(4% +/-2%).
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Should RBI target Core Inflation or Headline Inflation
The Economic Survey for 2023-24 questioned the merits of India’s inflation targeting regime, which aims at a headline inflation rate of 4% with a band of 2% on either side. It mused aloud whether a regime that targets inflation, excluding food prices, would be more appropriate in the Indian context, especially given the unintended effect
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Monetary Policy
Monetary Policy is defined by the Reserve Bank of India as “the policy of the central bank with regard to the use of monetary instruments under its control to achieve the goals specified in the RBI Act, 1934.” Monetary policy is concerned with the measures taken to regulate the supply of money, the cost and