Monetary Policy news

Monetary Policy news for UPSC/IAS examination

Monetary policy is an important tool to control the money supply and inflation in the economy. The policy has a direct impact on the consumer and is one of the most important aspects to keep the economy on track.

Monetary policy section of the economy would provide all the news related to inflation, changes in monetary policies and various CPI and WPI indexes, which are relevant for UPSC examination.

Updates on issues and concepts related to Monetary policies in India for 2020/21:

  • Reserve Bank of India (RBI) governance
    Context– RBI has to answer to Parliament why it misses the inflation target and what plans do they have to control inflation. What is Inflation targeting and what happen when RBI fails to meet inflation target? Inflation targeting involves using monetary policy to keep inflation close to the agreed target. RBI and ...
  • Base year of CPI-IW changed
    The Labour and Employment Ministry on Thursday revised the base year of the Consumer Price Index for Industrial Workers (CPI-IW) from 2001 to 2016. Why the base year for the Consumer Price Index for Industrial Workers(CPI-IW) has been changed? Due to the changing consumption pattern, more weightage has been given to spending ...
  • India’s inflation targeting policy (Monetary policy)
    Source – Live Mint Syllabus- GS-3 Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment. Context- Inflation targeting and the decisions of  Monetary Policy Committee (MPC). What causes inflation? The primary cause of inflation is the mismatch between demand and supply. The mismatch can be in following context- Excess money supply that raises ...
  • Demand to Rework Inflation Targeting Regime
    Source: Indian Express Gs3: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment. Context: Recently the monetary policy committee (MPC) concluded that elevated inflation has constrained it from easing policy rates. Why there is demand to rework inflation targeting regime? Economy slowdown:Since the growth rate is falling that is why question have ...
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