Monetary management

YOGESH NAMDEO INGLE.MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

1Monetary Policy

YOGESH NAMDEO INGLE.MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

2

Monetary policy & role played by central bank.

Monetary Policy

YOGESH NAMDEO INGLE.MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

3Monetary Policy

YOGESH NAMDEO INGLE.MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

4Monetary Policy

YOGESH NAMDEO INGLE.MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

5Monetary Policy

YOGESH NAMDEO INGLE.MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

6Monetary Policy

YOGESH NAMDEO INGLE.MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

7

Monetary Policy

Monetary Policy

YOGESH NAMDEO INGLE.MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

8

Objectives of monetary policyPrice stabilityFlow of creditEconomic growthFinancial stabilityInterest ratesCredit delivery Financial inclusionInstitutional developments

Monetary Policy

YOGESH NAMDEO INGLE.MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

9Monetary Policy

YOGESH NAMDEO INGLE.MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

10

The Governor of the Reserve Bank announces the Monetary Policy in April every year.

Followed by three quarterly reviews.

The overall goal is to promote economic growth and ensure price stability.

Monetary Policy

YOGESH NAMDEO INGLE.MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

11

Monetary Policy Framework

Operating Target M3 as a policy target with a

multiple indicators approach.Monetary Policy Instruments –Cash Reserve RatioStatutory Liquidity RatioRepo rateReverse repo rate

Monetary Policy

YOGESH NAMDEO INGLE.MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

12

ReviewMacroeconomic and monetary

developmentsAction taken and the status of past

policy.

Monetary Policy

YOGESH NAMDEO INGLE.MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

13

Institutional Mechanism for Monetary Policy-makingFinancial Markets Committee

(FMC)Monetary Policy Strategy GroupTechnical Advisory Committee

(TAC) on Monetary PolicyPre-Policy Consultation MeetingsResource Management

Discussions

Monetary Policy

YOGESH NAMDEO INGLE.MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

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Monetary Policy Department

The core activities of the Department include:

Preparing the Governor’s monetary policy statements and its quarterly reviews.

Formulating policy on interest rates of the banking sector.

Making projections on growth, inflation and monetary aggregates.

Authorizing food credit limits.Monitoring maintenance of CRR and SLR.

Monetary Policy

YOGESH NAMDEO INGLE.MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

15

Help yourself

RBIMonetary policy RBI-1

Monetary Policy

YOGESH NAMDEO INGLE.MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

16Monetary Policy