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#Economy #Monetary_policy #MPC

Read about headline and core inflation.
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Read about Open Market Operations(OMO).
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An open market operation (OMO) is an activity by a central bank to give (or take) liquidity in its currency to (or from) a bank or a group of banks.
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#OMO

The simultaneous purchase and sale of bonds or securities through OMOs help in changing the shape of the yield curve.

In India's context, Operation Twist is a bid to bring down interest rates on long-term loans--something that it has failed despite five rate cuts by RBI this year.


To know more click👇

https://www.indiatoday.in/business/story/reserve-bank-of-india-operation-twist-bond-market-lower-interest-rate-long-term-loans-1632810-2019-12-31
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#OMO #Operation_twist
#Agriculture

Read about Operation twist, already in news.


#Facts4Mains

The average share of farmers in  retail prices of major primary food  items varies between 28 and 78%. It is lower for perishables and  higher for non-perishable items.
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#OMO

Read about OMO and Operation Twist.

#Facts4prelims

The simultaneous purchase and sale of bonds or securities through OMOs help in changing the shape of the yield curve.

In India's context, Operation Twist is a bid to bring down interest rates on long-term loans--something that it has failed despite five rate cuts by RBI last year.
#GS_3
#Economy #Monetary_Policy

Read about
Monetary Policy and its limitations to control the inflation.

Also know

Monetary policy refers to central bank activities that are directed toward influencing the quantity of money and credit in an economy. By contrast, fiscal policy refers to the government's decisions about taxation and spending. Both monetary and fiscal policies are used to regulate economic activity over time.
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#Economy #Monetary_Policy

Read about
Monetary Policy and its limitations to control the inflation. Also read about the MPC.

Also know

Monetary policy refers to central bank activities that are directed toward influencing the quantity of money and credit in an economy. By contrast, fiscal policy refers to the government's decisions about taxation and spending. Both monetary and fiscal policies are used to regulate economic activity over time.
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Read about the decision taken by the MPC and its implications.
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Read the article along with similar articles of today.
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This is the minutes of meeting of 6 member MPC. As per the news
Monetary Policy Framework, each member of the MPC needs to be pen down the reason for their decision regarding policy rate. Just go through it.

What is the difference between
Monetary stimulus and Fiscal stimulus?
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Read about Inflation Targeting and MPC.

#Facts4Prelims

The
Monetary Policy Committee(6 members) is a statutory and institutionalized framework under the Reserve Bank of India Act, 1934, for maintaining price stability, while keeping in mind the objective of growth.

The Governor of RBI is ex-officio Chairman of the committee.

Decisions are taken by majority with the Governor having the casting vote in case of a tie.

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Impossible trinity or trilemma in monetary policy means that a country cannot have a fixed exchange rate, free movement of capital and an independent monetary policy at the same time.

Read the nuances of impossible trilemma.

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