BANKING AFFAIRS

Detailed explanation-1: -Overview. Under the Reserve Bank of India, Act, 1934 (RBI Act, 1934) (as amended in 2016), RBI is entrusted with the responsibility of conducting monetary policy in India with the primary objective of maintaining price stability while keeping in mind the objective of growth.

Detailed explanation-2: -The Federal Reserve sets U.S. monetary policy and the New York Fed plays a central role in implementing it. The Fed’s economic goals prescribed by Congress are to promote maximum employment, stable prices, and moderate long-term interest rates.

Detailed explanation-3: -The monetary policy in India is carried out under the authority of the Reserve Bank of India.

Detailed explanation-4: -On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today (February 8, 2023) decided to: Increase the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points to 6.50 per cent with immediate effect.