5 Things To Note About Monetary Policy

Published On: 04-Jul-2017

5 Things To Note About Monetary Policy

Monetary policy is how central banks control the supply of money, manage inflation and influence the currency in an economy. This is useful in encouraging liquidity (or curbing it if required) and maintaining overall economic stability. Here we look at monetary policy in India.

01

The central bank reviews the monetary policy.

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02

The monetary policy is reviewed bi-monthly.

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03

The RBI Governor is appointed by the government.

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04

The RBI uses key rates to signal the direction of its monetary policy.

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05

What are the key rates the RBI employs?

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