Q.3 How the central bank influences inflation expectations? Why communication between the Monetary Policy Committee and the RBI is important?

Mentor’s comment-
  • https://indianexpress.com/article/opinion/columns/mpc-monetary-policy-committee-rbi-7983009/
  • In the intro, briefly introduce the MPC.
  • In the body, mention the role played by the RBI in shaping the expectations of the people. In the next part, mention the moves such as separate¬†policy statements, the introduction of GSAP, changes in the reverse repo, and intervention in the foreign exchange market that indicate the lack of communication and highlight the need for a framework to ensure the policy coherence.
  • Conclude by mentioning the need for communication between MPC and the RBI.
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smriti shukla
smriti shukla
8 days ago

razor id- 573776

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