The frequent policy challenge faced by RBI is that of Monetary Policy Transmission. Analysing the reasons for the same, provide solutions. (250 Words)

Mentors Comments: 1. What is monetary policy transmission 2. What are the challenges it faces and why 3. Solutions Answer: Monetary transmission refers to the process by which a central bank’s monetary policy signals (like repo rate) are passed on, through financial system to influence the businesses and households. There are many monetary policy signals … Continue reading The frequent policy challenge faced by RBI is that of Monetary Policy Transmission. Analysing the reasons for the same, provide solutions. (250 Words)