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Learn about Hawkish Monetary Policy: a strategy centered on inflation control, using higher interest rates and tight credit to ensure price stability. Key for GS Paper 3, this concept is vital for understanding RBI’s stance in UPSC preparation.
Read MoreUnderstand Dovish Monetary Policy: a growth-oriented approach prioritizing lower interest rates, increased money supply, and economic expansion. Essential for GS Paper 3 Economics, this concept is key for UPSC and RBI exam aspirants.
Read MoreMONETARY POLICY SHIFT TO BOOST GROWTH Syllabus: GS-3: ● Indian economy and policies ● Monetary policy and reforms Why in the News? The recent RBI policy announcement on 25 February, following the Reserve Bank of India’s repo rate reduction, has garnered significant attention, delivering a strong signal to both domestic and global markets about India’s …
Read MoreSupreme Court Strikes Down Retrospective Environmental Clearances Why in the News? The Supreme Court recently invalidated the Centre’s 2017 notification and 2021 SOP allowing post-facto environmental clearances for projects that began without prior approval, citing violation of constitutional rights and environmental laws. Background on Centre’s Notification and SOP In 2017, MoEFCC allowed a one-time, six-month …
Read MoreCore Inflation Trends Shape RBI’s Rate Cut Decisions Why in the News? Core inflation, excluding volatile food and fuel prices, is rising while food inflation falls. This reversal influences the Reserve Bank of India’s approach to monetary policy and potential interest rate cuts. Inflation Trends and RBI’s Focus: Inflation was mainly driven by food prices …
Read MoreImproved Repo Rate Transmission Enhances Monetary Effectiveness Syllabus: GS-3: Banking Sector & NBFCs , Statutory Bodies , Monetary Policy , Growth & Development Focus: The Reserve Bank of India (RBI) has improved its monetary policy transmission significantly over the past few years, especially in the context of repo rate adjustments. A combination of regulatory shifts, …
Read MoreWhy in the news? Government Review: Sovereign Gold Bond (SGB) Scheme may be discontinued due to high fiscal financing costs. Policy Alignment: Budget 2024-25 reduced gold import duty, achieving the objective of boosting gold demand, initially addressed by SGBs. Market Adjustment: No SGB issuances have been made in the current financial year despite budget allocation …
Read MoreWhy in the news? The Reserve Bank of India’s Monetary Policy Committee is likely to maintain the repo rate at 6.5% due to persistent food inflation, signaling a cautious approach to monetary policy. Expectations suggest the MPC will keep the monetary policy stance unchanged, focusing on managing inflation and supporting economic growth amid uncertainties. About …
Read MoreWhy in the news? RBI Deputy Governor stresses on maintaining restrictive monetary policy due to persisting inflation risks and uncertain economic conditions. About the Importance of Price Stability: RBI Deputy Governor Michael Deba- brata Patra underscores the need to restore price stability for sustaining the economy’s growth trajectory. He highlights that the current economic conditions …
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