Download the BYJU'S Exam Prep App for free IAS preparation videos & tests - Download the BYJU'S Exam Prep App for free IAS preparation videos & tests -

How does the RBI control inflation and deflation?

The Reserve Bank of India (RBI) uses various instruments of monetary policy to control inflation and deflation. You can read about the Inflation in Economy- Types of Inflation, Inflation Remedies [UPSC Notes] in the given link.

The different instruments of monetary policy used by RBI are Repo Rate, Reverse Repo Rate, Bank Rate, Open Market Operations, Statutory Liquidity Ratio (SLR), Cash Reserve Ratio (CRR), Liquidity Adjustment Facility (LAF), Market Stabilisation Scheme (MSS).

Further readings:

  1. RBI – Know About Reserve Bank of India, Functions, Composition
  2. Monetary Policy Committee (MPC) – An Overview, Instruments of Monetary Policy

Related Links

Consumer Price Index (CPI) – Types of CPI, Calculation of CPI – Indian Economy Notes

Inflation Targeting: Methods, Drawbacks and Benefits

Previous Years Economy Questions in UPSC Mains General Studies Paper – 3

Cashless Economy in India – UPSC GS-III Notes

Monetary Policy – Objectives, Roles and Instruments (UPSC Indian Economy)

Union Budget 2021 – An Overview of Proposals on Six Different Pillars

Comments

Leave a Comment

Your Mobile number and Email id will not be published.

*

*