3 Indian & AP Economy and Planning · 3.4.1 Money and monetary policy

3.4.1.6 Monetary Policy Committee, inflation targeting and lending rate benchmarks (BPLR to EBLR)

Since 2016 a six-member Monetary Policy Committee sets the repo rate to meet a CPI inflation target of 4 per cent (band 2-6 per cent), and bank loan rates are tied to external benchmarks.

  • APPSC Group 1
  • Advanced level
  • 6 min read
  • Full course

Key terms

  • MPC
  • section 45ZB
  • inflation targeting
  • Urjit Patel Committee
  • 4 per cent
  • BPLR
  • base rate
  • MCLR
  • EBLR
  • monetary policy framework agreement

What this note covers

  1. Core factsFoundation
  2. ExplainedStandard
  3. DeeperAdvanced
  4. Mains writingMains writing
  5. Common trapsFoundation
  6. Quick revisionFoundation

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