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Mid-quarter Review of the Monetary Policy

The Reserve Bank of India recently decided to undertake mid-quarter review of the monetary policy to keep pace with the global practices and the fast-changing changing monetary environment.

Oct 9, 2010 17:35 IST

The Reserve Bank of India recently decided to undertake mid-quarter review of the monetary policy to keep pace with the global practices and the fast-changing changing monetary environment. RBI’s decision implies that it would review its monetary policy every six weeks and take appropriate measures. Currently, scheduled policy announcements are made once in a quarter. The RBI proposed to set up a Working Group to review the current operating procedure of monetary policy of the Reserve Bank, including the liquidity adjustment facility (LAF) as a part of the initiative to make structural changes in the liquidity management.