Monetary Policy Framework Evolution in India
The shift towards a flexible inflation targeting framework and the constitution of a six-member Monetary Policy Committee (MPC) marked a significant reform in India's monetary policy. This structural change aimed to enhance transparency, accountability, and effectiveness in managing inflation.
Key Reform Year: 2016
This important transition occurred in the year 2016. The Reserve Bank of India (RBI) Act, 1934 was amended via the Finance Act, 2016, legally mandating the inflation targeting framework and establishing the MPC. The primary objective set for the MPC is to maintain inflation within a specified band while keeping in mind the objective of growth. This structure replaced the previous system where the RBI Governor solely determined the policy repo rate.
Similar Questions
The purchasing power of a currency relative to another at current exchange rates and prices is ________.
- Bank rate is the interest rate at which:
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'Indradhanush 2.0' is associated with:
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Important Questions from Money and Banking
Dr. Urjit Patel, who has been appointed recently as Governor of Reserve Bank of India, was holding which position immediately prior to this appointment?
As per the RBI guidelines, which one of the following is the minimum tenure of Masala Bonds that an Indian company can issue offshore?
______ is a tax system that collects a greater share of income from those with high incomes than from those with lower incomes.
In which year had India's ratio of public debt to GDP gone up to a record 84.2%?
______ is an economic scenario where a peculiar combination of low growth and rising inflation leads to high unemployment.
