Glossary Terms

03

Nov'17

Inflation Targeting

Inflation targeting is a monetary policy framework or strategy in which central bank sets a target inflation rate and then, …

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03

Nov'17

Monetary Policy Framework

Monetary policy framework as its name suggests, refers to the mechanism of monetary policy design and its execution. According to …

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03

Nov'17

Monetary Policy Corridor

The Corridor in the monetary policy of the RBI refers to the area between the Marginal Standing Facility Rate which …

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03

Nov'17

Term Repo under Liquidity Adjustment Facility

A term repo is a repo of more than one-day duration. The word term denotes longer period. Hence it is …

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03

Nov'17

Bank Rate

Bank rate is a monetary policy tool of the RBI. Bank Rate (BR) is the rate at which the RBI …

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03

Nov'17

Marginal Standing Facility (MSF)

MSF allows banks to borrow overnight from the RBI by submitting a prescribed amount of securities with the RBI when …

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03

Nov'17

Repo or Repurchasing Option

Repo (Repurchasing Option) is a contract between two parties when one party gives a credible security to the other as …

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03

Nov'17

Reverse repo rate

Reverse repo rate is an interest rate given by the RBI to commercial banks when the latter parks one-day deposits …

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03

Nov'17

Reverse repo

Reverse repo is liquidity adjustment operation by the RBI. It is an operation done by the RBI to absorb excess …

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03

Nov'17

Open Market Operations (OMOs)

Open Market Operation is a monetary policy tool of the RBI. Open Market Operations refers to buying and selling of …

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