What is the Monetary and Credit Policy?
Aparajita Saha The Reserve Bank of India announces the Monetary and Credit Policy twice a year. On October 22, 2001, it will announce the second half (October 2001-March 2002) of the biannual policy. For the uninitiated, this policy determines the supply of money in the economy and the rate of interest charged by banks. The policy also contains an economic overview and presents future forecasts. Here are a list of terms and their definitions to guide you through the bewildering maze of terms that accompany the RBI’s monetary policy: How often is the Monetary Policy announced? Initially, the Reserve Bank of India announced all its monetary measures twice a year in the Monetary and Credit Policy. However, monetary policy has become dynamic in nature as RBI reserves its right to alter it from time to time, depending on the state of the economy. What is monetary and fiscal policy? Two important tools of macroeconomic policy are monetary policy and fiscal policy. The monetary policy regulat
