Phase IFoundation
Background
Overview
Understanding the MPC is crucial for comprehending India's macroeconomic management, inflation control mechanisms, and the institutional framework governing monetary policy decisions, which directly impacts economic growth and stability.
Monetary policy refers to the actions undertaken by a central bank, like the Reserve Bank of India (RBI), to influence the availability and cost of money and credit to promote national economic goals. In India, the primary objective of monetary policy is to maintain price stability while keeping in mind the objective of growth, under an inflation targeting framework.