RBI monetary policy, simply explained

The Reserve Bank of India (RBI) manages money supply and inflation. Its Monetary Policy Committee (MPC) meets roughly every two months to set the repo rate.

• To fight inflation, it raises rates (cools demand).
• To boost growth, it cuts rates (cheaper credit).
• It also signals its stance (accommodative / neutral / tightening), which guides bond markets.

Debt-fund investors especially watch RBI policy, since rate moves directly change bond NAVs.

→ See India's key indicators on the Macro Economy page.