Cash Reserve Ratio
Cash Reserve Ratio (CRR) is an instrument (direct instrument) of RBI’s monetary policy. The CRR requires that every scheduled commercial …
Read MoreIndirect Instruments of Monetary Policy
Indirect instruments are the instruments of the RBI where policy actions/responses in institutions like commercial banks are also necessary for …
Read MoreDirect instruments of monetary policy
Direct instruments are the ones which enable the RBI to hit the target (money supply, liquidity) without the policy action …
Read MoreFinancial Stability
Financial stability has been emerged as a prominent objective of monetary policy especially after the global financial crisis of 2007. …
Read MorePrice Stability
Price stability is a situation where the rate of increase or decrease in prices doesn’t distort the general economic activities …
Read MoreAnnual inflation target
Central banks in most countries have an annual inflation target. If inflation goes beyond this target, the central bank may …
Read MoreOperating target of monetary policy
Operating target under monetary policy refers to the variable that the Reserve Bank should constantly track (keep observation) to design …
Read MoreMonetary policy target
Target in monetary policy means the variable to be influenced through the use of the instruments. For example, the widely-held …
Read MoreInstruments of Monetary policy
The word instrument in the context of monetary policy refers to the tool used by the RBI to hit at …
Read MoreObjectives of monetary policy
Objective is the ultimate goal of monetary policy implementation. The prominent objectives of the RBI’s monetary policy are: price stability, …
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