Monetary policy
Also called: Monetary Policy Committee, MPC, inflation targeting
The central bank's management of interest rates and the money supply to keep inflation in check while supporting growth.
In India, the RBI's Monetary Policy Committee sets the policy repo rate with the aim of keeping consumer price inflation near a target set by the government in consultation with the RBI. The RBI also manages liquidity and reserve requirements. The target and the framework can be changed, so check the RBI's current statements.
Learn more in these lessons
- RBI monetary policyHow does the RBI try to control inflation, and how does it affect markets?
Related terms
Spotted a mistake or something unclear? Report it by email. Here is how corrections work.