Monetary Policy of RBI and its Latest Review
DOI:
https://doi.org/10.26703/jct.v5i1.368Keywords:
Monetary Policy, RBI, India, Fiscal PolicyAbstract
The third quarter review of monetary policy the main challenge of RBI to control the inflation without hearting the growth. In the Q2 review RBI increase the SLR (statutory liquidity ratio ) 24 per cent to 25 per cent . Q3 review RBI policy action a 75 basis point increase in the CRR (cash reserve ratio) in two stages and no change in repo rate and the reverse repo rate. The increase of cash reserve ratio 36,000 crore of excess liquidity will be absorbed from the system. The result of CRR increase may be reduction in excess liquidity, to maintain an interest rate environment consistently, and actively manage liquidity to productive sector. We think that action of RBI is the best in present scenario and the RBI achieved the desired expectation.
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RBI monetary policy review Q1, Q2, Q3,
Banking Regulation Act, 1949
RBI Act, 1934
Dutt and sundram, (2002): Indian Economy, New Delhi, S. chand &Co.
R Nagraj (2006): Aspects Of India’s Economic Growth and Reforms, Academic Foundation, Delhi.
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