Monetary policy of India

E179212

The monetary policy of India is the framework through which the Reserve Bank of India manages money supply, interest rates, and inflation to promote economic growth and financial stability.

All labels observed (3)

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Statements (51)

Predicate Object
instanceOf monetary policy framework
aimsTo anchor inflation expectations
maintain orderly conditions in financial markets
centralBank Reserve Bank of India
communicationTool press conferences by RBI Governor
coordinationWith fiscal policy of India
country India
decisionMakingBody Monetary Policy Committee of the Reserve Bank of India
surface form: Monetary Policy Committee of India
frameworkType inflation targeting framework
historicalRegime monetary targeting framework
multiple indicator approach
historicalRegimeChange shift to flexible inflation targeting in 2016
inflationTarget 4 percent CPI inflation
inflationTargetEffectiveFrom 2016
inflationTargetImplementedBy Reserve Bank of India
inflationTargetSetBy Government of India
inflationToleranceBand 2 percent to 6 percent CPI inflation
intermediateTarget inflation
legalBasis Reserve Bank of India Act, 1934
surface form: Reserve Bank of India (Amendment) Act, 2016

Reserve Bank of India Act, 1934
managedBy Reserve Bank of India
MPCConstituents RBI Deputy Governor in charge of monetary policy
Urjit Patel
surface form: RBI Governor

one RBI officer nominated by RBI Central Board
three external members nominated by Government of India
MPCMeetingFrequency at least four times a year
typically bi-monthly
MPCVotingRule RBI Governor has casting vote in case of tie
each member has one vote
objective adequate flow of credit to productive sectors
economic growth
financial stability
price stability
operatingTarget weighted average call money rate
publication Monetary Policy Report
Resolution of the Monetary Policy Committee
transmissionChannel asset price channel
credit channel
exchange rate channel
expectations channel
interest rate channel
usesInstrument bank rate
cash reserve ratio
liquidity adjustment facility
marginal standing facility rate
market stabilisation scheme
open market operations
policy repo rate
reverse repo rate
standing deposit facility
statutory liquidity ratio

How these facts were elicited

Referenced by (3)

Full triples — surface form annotated when it differs from this entity's canonical label.

The Problem of the Rupee associatedWith Monetary policy of India
this entity surface form: Indian monetary reform movement
Marginal standing facility rate partOf Monetary policy of India
this entity surface form: Liquidity adjustment facility framework of the Reserve Bank of India