What is the impact of Operation Twist in India?

In 2013, there were questions regarding the success of Operation Twist. Operation twist can have a temporary effect on the yield curve. For 2019, in the short term, the Reserve Bank of India (RBI) was able to achieve its objectives with Operation Twist. It also had the positive effect of lowering interest costs for the centre. You can read about the RBI – Reserve Bank of India [UPSC Indian Economy Notes] in the given link.

For the longer term, there are better methods which would help in having better monetary transmission.

Further readings:

  1. Monetary Policy – Objectives, Roles and Instruments
  2. Open Market Operation (OMO) – Two Kinds, REPO and PEMO

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