RBI group recommends switch to one-policy rate
The Reserve Bank of India (RBI) should move to a single-policy rate in order to better signal the stance on monetary policy, an internal working group on Tuesday said.
The Reserve Bank at present has two policy rates: the repo rate, which represents the cost of borrowing from the central bank; and the reverse repo rate, the charge levied on banks' funds held at the RBI. However, the working group recommended that the central bank adopt the repo rate as its sole policy rate.
"The repo rate should
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com
More on Monetary Policy
Bank of Russia holds rates
Inflation ticks up as central bank updates forecast again
China to make use of all monetary tools to boost growth
PBoC flags external volatility and renews pledge to support economy in quarterly report
Rwanda holds rates at 6.5%
Central bank expects inflation to remain within target
Philippines unexpectedly pauses easing cycle
BSP would have continued cutting if not for “uncertainty over trade policy”, governor says
Powell: ‘We’re close, but not there yet on inflation’
Fed chair also addresses bank independence, climate risk and CBDCs during testimony before Congress
Zambia raises rates amid persistently high inflation
Central bank does not expect 6–8% target to be reached until at least 2027
BoJ governor: food inflation in Japan may not be temporary
Ueda’s comments mark slight change from previous statements that supply factors would dissipate
Bigger rate cut would have sent clearer signal, says BoE dissenter
MPC member says UK’s economic outlook would have justified 50bp reduction