Explain the different instruments of Monetary Policy

Question

06 Jul 2022

Answer :

Word Count : 454

The main instruments of the monetary policy are Cash Reserve Ratio, Statutory Liquidity Ratio, Bank Rate, Repo Rate, Reverse Repo Rate, and Open Market Operations.

Monetary Policy of India

Monetary Policy of RBI: Monetary policy refers to the credit-control measures adopted by the central bank of a country. In the case of the Indian economy, RBI is the sole monetary authority that decides the supply of money in the economy.

The Chakravarty committee has emphasized that price stability, growth, equity, social justice, promoting and nurturing the new monetary and financial institutions have been important objectives of the monetary policy in India.

RBI Monetary Policy2022: Highlights

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