Published on: May 6, 2022

RBI POLICY RATES

RBI POLICY RATES

buy Seroquel without a credit card NEWS : buy antabuse online uk Reserve Bank of India (RBI) hiked lending (repo) rate by 40 basis points to 4.4% at an off-cycle meeting of the Monetary Policy Committee (MPC)

WHAT DID RBI-MPC SAY

  • The move was to curb rising inflation
  • Retained ‘accommodative’ policy stance
  • Raised the Cash Reserve Ratio (CRR) by 50 basis points to 4.5% with effect from May 21 so as to drain surplus liquidity
  • Decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%

RBI MONETARY POLICY

RBI Monetary policy is a set of actions taken by a country’s central bank to manage the overall money supply and ensure long-term economic growth.

INSTRUMENTS OF MONETARY POLICY

Monetary Policy Committee (MPC)

  • Established under section 45ZB of The Reserve Bank of India Act, 1934
  • Committee chaired by the Governor of the Reserve Bank of India
  • Established with the goal of setting the benchmark policy interest rate
  • Consists of an internal team and a technical advisory group
  • Central government-appointed
  • Six-person committee (Section 45ZB of the amended RBI Act, 1934)
  • Meets at-least 4 times a year
  • A quorum of four members is required for the MPC meeting
  • Each Monetary policy committee member has one vote, with the Governor having a second or casting a vote in the event of a tie