What Is a Monetary Policy in Economics?

What Is the Meaning of Monetary Policy?

What Are the Types of Monetary Policy?

What Are the Goals of Monetary Policy in India?

What Are the Tools of Monetary Policy?

FAQs About Monetary Policies

What are the prevailing rates of monetary policy in India? up-arrow

As per current reports, the prevailing rates of the Reserve Bank of India (RBI) stand at a 4% policy repo rate, 3.35% reverse repo rate, 4.25% marginal standing facility rate, and 4.25% bank rate.

On which factors do the monetary depend? up-arrow

In India, monetary policy depends on economic statistics like gross domestic product (GDP), inflation rate, and industrial and sector-based growth rates.

What do you mean by quantitative monetary policy? up-arrow

The quantitative policy is a monetary policy wherein a country's central bank attempts to increase liquidity in its financial system, usually by buying long-term government bonds from its leading banks. By doing so, they can fuel economic growth by making banks lend or invest effortlessly.

Is taxation an important tool of monetary policy? up-arrow

In India, taxation is considered a significant and authoritative monetary policy instrument for the public authorities that considerably influence the changes in investment, disposable income and consumption.