Monetary Policy in India – Objectives, Framework, Committee, Instruments

Reading Time: 8 mins The Reserve Bank of India on 6th February 2020, had released the 6th Bi-Monthly Monetary Policy Statement 2020. After looking into the current macroeconomic situation, RBI’s Monetary Policy Committee had decided not to change the policy repo rate, which is at 5.15%, in accordance with its plan to maintain the accommodative stance until the economic growth is revived, and the inflation rate is within the target. Apart from this, several other steps were taken by the MPC to boost economic growth and demand. The accommodative stance taken by the RBI is a step in the right direction as it can support economic growth and reduce inflation exponentially.