{"id":3555,"date":"2022-02-21T06:53:53","date_gmt":"2022-02-21T06:53:53","guid":{"rendered":"https:\/\/goldenpi.com\/blog\/?p=3555"},"modified":"2025-09-30T05:53:58","modified_gmt":"2025-09-30T05:53:58","slug":"rbi-monetary-policy-2022-2023","status":"publish","type":"post","link":"https:\/\/goldenpi.com\/blog\/market-view\/rbi-monetary-policy-2022-2023\/","title":{"rendered":"RBI MONETARY POLICY 2022-2023"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">As the title suggests, the RBI monetary policy is a policy formulated by the central bank, i.e. Reserve Bank of India or RBI, and relates to the monetary matters of the country, like regulating the supply of money, availability, and cost of credit in the economy. Its primary objective is to maintain price stability while keeping in mind the growth factor. As we all know, price stability is a necessary precondition for sustainable growth.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Recently the Reserve Bank of India\u00a0has announced a couple of policies and most of us might\u00a0still have many questions in mind. For example:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">How are these policies going to affect the nation\u2019s economy?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Will it help in the recovery of domestic economic activity?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Through this blog, we will try to give you a brief summary of the recent announcement and its overall impact.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On 10th February 2022, RBI\u2019s Monetary Policy Committee(MPC) announced its monetary policy on an assessment of the current macroeconomic situation <\/span><span style=\"font-weight: 400;\">such as employment, inflation, productivity, interest rates, the foreign trade deficit.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">First of all, let&#8217;s understand the 2 kinds of policies in the context of an economy:<\/span><\/p>\n<ul>\n<li aria-level=\"1\"><b><i>Monetary Policy<\/i><\/b><\/li>\n<li aria-level=\"1\"><strong>Fiscal Policy<\/strong><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The primary difference between the two is that the Monetary policy is formulated by the central bank, i.e. Reserve Bank of India, whereas, a Fiscal Policy is formulated by the Government of the country.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A Fiscal Policy is the projection of earnings and expenditures made by the government to influence a country\u2019s economy, whereas, Monetary Policy is a set of actions undertaken by RBI to control the overall money supply and achieve sustainable economic growth in the economy. The policy is set to maintain a very low rate of inflation or deflation so that the general level of prices does not show significant fluctuations. The policy is with regard to the use of monetary instruments under its control to achieve the goals.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These instruments are:<\/span><\/p>\n<ul>\n<li aria-level=\"1\"><b><i>Bank rates<\/i><\/b><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><strong>Repo rate<\/strong><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><strong>Reverse repo rate and<\/strong><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><strong>Marginal standing facility rate.<\/strong><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The Monetary Policy Committee(MPC) consists of 6 members, including the Governor of RBI, Deputy Governor of RBI and 4 others. Once every 6 months, the RBI publishes a Monetary Policy report.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this article, we will try to understand the changes that have taken place because of the February 2022 Monetary Policy.<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">Let us have a look at the exciting new Highlights of Monetary Policy 2022<\/span><\/i><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/goldenpi.com\/blog\/market-view\/rbi-monetary-policy-2022-2023\/#a_RBI_plans_to_keep_the_following_rates_in_its_Monetary_Policy_unchanged\" >a. RBI plans to keep the following rates in its Monetary Policy unchanged<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/goldenpi.com\/blog\/market-view\/rbi-monetary-policy-2022-2023\/#b_To_support_the_economy_during_the_Covid-19_situation_RBIs_monetary_policy_committee_decided_to_maintain_the_accommodative_stance_to_revive_and_sustain_growth_on_a_durable_basis\" >b. To support the economy during the Covid-19 situation, RBI\u2019s monetary policy committee decided to maintain the accommodative stance to revive and sustain growth on a durable basis.\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/goldenpi.com\/blog\/market-view\/rbi-monetary-policy-2022-2023\/#c_With_RBI_infusing_money_into_the_economy_as_read_in_the_b_point_inflation_also_goes_up_Therefore_the_Monetary_Policy_Committee_is_projecting_to_retain_the_inflation_for_2021-22_at_53_Q4-_57_It_also_assumes_a_normal_monsoon_in_2022\" >c. With RBI infusing money into the economy (as read in the b point), inflation also goes up. Therefore, the Monetary Policy Committee is projecting to retain the inflation for 2021-22 at 5.3% (Q4- 5.7%). It also assumes a normal monsoon in 2022.<\/a><\/li><\/ul><\/nav><\/div>\n<h4><span class=\"ez-toc-section\" id=\"a_RBI_plans_to_keep_the_following_rates_in_its_Monetary_Policy_unchanged\"><\/span><b><i>a. RBI plans to keep the following rates in its Monetary Policy unchanged<\/i><\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<div class=\"pcrstb-wrap\"><table>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">Indicator<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Current Rate<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Repo rate<\/span><\/td>\n<td><span style=\"font-weight: 400;\">4%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Reverse repo rate<\/span><\/td>\n<td><span style=\"font-weight: 400;\">3.35%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Marginal Standing facility rate<\/span><\/td>\n<td><span style=\"font-weight: 400;\">4.25%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Bank rate<\/span><\/td>\n<td><span style=\"font-weight: 400;\">4.25%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<p><span style=\"font-weight: 400;\">As per the <a href=\"https:\/\/goldenpi.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">bond market<\/a>, it was expected that the RBI would make some changes in the prevailing indicators which would result in an increase in the interest rates, yields of the bonds can also move upward, leading to prices of such bonds going down.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But with no change in the RBI monetary policy and demand still staying the same in the bond market, prices of such bonds moved northward, and the interest rates moved downward.<\/span><\/p>\n<p><b><i>Note- Interest rates share a parallel relationship with the yields of the bonds, whereas the yields of the bonds share an inverse relationship with the price of the bonds<\/i><\/b><\/p>\n<hr \/>\n<p><span style=\"color: #003366;\"><i><span style=\"font-weight: 400;\">What do these parameters mean?<\/span><\/i><\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #003366;\"><i><span style=\"font-weight: 400;\">Repo rate: <a href=\"https:\/\/goldenpi.com\/blog\/fixed-income\/impact-of-unchanged-repo-rate-on-government-securities-2024\/\" target=\"_blank\" rel=\"noopener noreferrer\">Repo rate<\/a> is the rate at which banks borrow from RBI on a short-term basis against a repurchase agreement. Under this policy, banks are required to provide government securities aka G-secs as collateral and later buy them back after a pre-defined time.<\/span><\/i><\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #003366;\">Reverse Repo Rate: Reverse Repo rate is the rate at which RBI takes money from banks and pays interest in return. The Reverse repo rate is always less than the repo rate.<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #003366;\">Marginal Standing Facility (MSF) Rate: MSF Rate is the interest rate at which the Central Bank lends money to commercial banks. Commercial banks avail loans at this rate when they are facing an acute shortage of liquidity. Banks availing of MSF Rate can use a maximum of 1% of SLR securities.<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #003366;\">Statutory Liquidity Ratio is a minimum percentage of deposits that a commercial bank maintains as a reserve before offering credit to customers. These could be maintained in the form of liquid cash, gold, or other securities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #003366;\">Bank Rate- Bank rate is the rate at which the banks can borrow money from the Reserve bank of India without providing any security.\u00a0<\/span><\/li>\n<\/ul>\n<hr \/>\n<h4><span class=\"ez-toc-section\" id=\"b_To_support_the_economy_during_the_Covid-19_situation_RBIs_monetary_policy_committee_decided_to_maintain_the_accommodative_stance_to_revive_and_sustain_growth_on_a_durable_basis\"><\/span><b><i>b. To support the economy during the Covid-19 situation, RBI\u2019s monetary policy committee decided to maintain the accommodative stance to revive and sustain growth on a durable basis.<\/i><\/b><b>\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><i><span style=\"font-weight: 400;\">An accommodative stance means that the central bank plans to keep the rates of the monetary instruments unchanged. This shows that RBI is willing to infuse money into the economy to boost economic growth. Taking loans becomes affordable in this stance.<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">In an economy adopting an accommodative stance like India, RBI plans to infuse as much capital as possible, until the inflation is under a set target. This would eventually lead to low lending rates, through which corporates, MSME\u2019s and other incorporations would be able to take more loans from the banks. It can lead to the utilization of more resources which would fuel the growth of the nation in the near future.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"c_With_RBI_infusing_money_into_the_economy_as_read_in_the_b_point_inflation_also_goes_up_Therefore_the_Monetary_Policy_Committee_is_projecting_to_retain_the_inflation_for_2021-22_at_53_Q4-_57_It_also_assumes_a_normal_monsoon_in_2022\"><\/span><strong><em>c. With RBI infusing money into the economy (as read in the b point), inflation also goes up. Therefore, the Monetary Policy Committee is projecting to retain the inflation for 2021-22 at 5.3% (Q4- 5.7%). It also assumes a normal monsoon in 2022.<\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><b><i>\u00a0<\/i><\/b><i><span style=\"font-weight: 400;\">A normal monsoon means an appropriate amount of rainfall which would improve the condition of farmers, their income would increase. It also indicates that a good supply of food and its related commodities would be maintained, hence making the prices fair and affordable for the public. Thereby maintaining the rural demand and consumption. Whereas lack of supply with more demand would lead to prices shooting up. This will enhance India\u2019s food production and GDP growth.<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">Expecting a normal monsoon in 2022, MPC projects\u00a0 a Consumer Price Index (CPI) inflation of 4.5% in 2022-23 (Q1- 4.9%, Q2- 5%, Q3- 4% and Q4- 4.2%). These decisions align to achieve the medium-term target for consumer price index (CPI) inflation of 4 percent within a band of +\/- 2 percent, while supporting growth.\u00a0<\/span><\/p>\n<div class=\"pcrstb-wrap\"><table>\n<tbody>\n<tr>\n<td><i><span style=\"font-weight: 400;\">Consumer Price Index- Consumer Price Index or CPI is an index measuring retail inflation in the economy by collecting the change in prices of most common goods and services.<\/span><\/i><span style=\"font-weight: 400;\">\u00a0<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<p><b>The increase in the capital expenditure announced in the Union Budget 2022-23, boosting the infrastructure, will lead to an increase in the aggregate demand in the economy. Furthermore, due to more demand, the economy would grow. MPC projected a real GDP growth at-7.8%<\/b><\/p>\n<p>&nbsp;<\/p>\n<p><img decoding=\"async\" class=\"alignnone wp-image-3578 size-large\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/02\/23050538\/Picture2-1024x615.png\" alt=\"GDP Growth\" width=\"1024\" height=\"615\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/02\/23050538\/Picture2-1024x615.png 1024w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/02\/23050538\/Picture2-300x180.png 300w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/02\/23050538\/Picture2-768x461.png 768w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/02\/23050538\/Picture2-1536x923.png 1536w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/02\/23050538\/Picture2-1170x703.png 1170w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/02\/23050538\/Picture2-585x351.png 585w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/02\/23050538\/Picture2.png 1653w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<div class=\"pcrstb-wrap\"><table>\n<tbody>\n<tr>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">FY 2022-23<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Q1<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Q2<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Q3<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Q4<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Real GDP Growth\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7.8%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">17.2%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">4.3%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">4.5%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<p><i><span style=\"font-weight: 400;\">Gross Domestic Product is a monetary measure of the market value of the Final goods (goods and services produced minus the value of goods and services used to produce the product) in a specific time period by country.<\/span><\/i><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><i><span style=\"font-weight: 400;\">Real GDP is the market value of goods and services produced in an economy adjusted for inflation to reflect changes in real output.<\/span><\/i><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Nominal GDP is the market value of goods and services produced in an economy at its current price.\u00a0\u00a0\u00a0<\/span><\/li>\n<\/ul>\n<p><b><i>To read more about this, please refer to the previous article &#8211;\u00a0 <a href=\"https:\/\/goldenpi.com\/blog\/uncategorized\/budget-2022-what-it-means-for-the-bond-market-and-its-investors\/\">BUDGET 2022: WHAT DOES IT MEAN FOR THE BOND MARKET AND ITS INVESTORS?<\/a><\/i><\/b><\/p>\n<p><b>d. Global Central banks of developed nations accelerated their fight against inflation. These banks have tightened liquidity, i.e. increasing the interest rates, hence, making loans expensive and difficult to take. This can lead to less money sloshing in the economy, affecting the global demand. With less money in hand, demand goes down, thereby affecting the exports done by India. Fewer exports mean less income. These supply chain disruptors create inflationary pressure. Also, because of monetary policy, normalization in developed nations creates instability in financial markets. Considering this one of the major reasons, MPC concludes that the ongoing domestic recovery is still incomplete and needs continued policy support.<\/b><\/p>\n<div class=\"pcrstb-wrap\"><table>\n<tbody>\n<tr>\n<td><i><span style=\"font-weight: 400;\">Global Central Banks increase interest rates\u2192 Loans become expensive\u2192 low money supply in the economy\u2192 demand moves downward in the specific country\u2192 Fewer exports for India\u2192 Lower Income for India<\/span><\/i><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<p><span style=\"font-weight: 400;\">Furthermore, the northward push in the yield curve of bonds cannot be afforded by the RBI. Hence, RBI should intervene and comfort the market forces, like they did last year by purchasing G-secs through Open Market Operations to cap yield. In order to control money supply, the RBI buys and sells government securities in the open market. When the RBI sells government securities, the liquidity is sucked from the market, and therefore the exact opposite happens when RBI buys securities. The latter is done to control inflation. The objective of OMOs is to keep a check on temporary liquidity mismatches in the market, owing to foreign capital flow.<\/span><\/p>\n<ul>\n<li aria-level=\"1\"><b><i>As stated in the Budget 2022-23, the increment in the capital expenditure for the development of infrastructure in the economy, have increased the total amount that the government will borrow to make such developments.\u00a0<\/i><\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">To facilitate its high borrowing program, RBI has made some changes to its Liquidity management framework.\u00a0<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Variable-rate repo for different tenures will be conducted as and when required, with the Cash Reserve ratio maintenance cycle.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The main liquidity management tool will be considered as the 14-day tenor , variable rate repo, and reverse rate repo. They will also be conducted within the Cash Reserve Ratio maintenance cycle.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">The Reserve Bank of India (RBI) aims to reduce banks\u2019 dependence on the overnight liquidity window and instead look at a 14-day auction to manage liquidity operations.<\/span><\/p>\n<div class=\"pcrstb-wrap\"><table>\n<tbody>\n<tr>\n<td><i><span style=\"font-weight: 400;\">A reverse repo is the rate at which RBI borrows money from banks. This is partly done at a fixed rate, and some of it is at a variable rate.<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">Cash Reserve Ratio is the share of banks total deposits that are being maintained as reserves by the Reserve Bank of India in the form of liquid cash.<\/span><\/i><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<p><b>e. An Increase in Crude oil prices also serves as a big concern for the bond market. With the increase in the Crude Oil price, import inflation would also increase. An increase in inflation would lead to an increase in Fiscal deficit. Henceforth, to fill up the gap created by the Fiscal deficit, more borrowings would be required. With more borrowings, the yields on the bonds would also move northwards.<\/b><\/p>\n<div class=\"pcrstb-wrap\"><table>\n<tbody>\n<tr>\n<td><i><span style=\"font-weight: 400;\">Increase in Crude Oil Price\u2192 Increase in Import price\u2192 increase in inflation\u2192 Increase in Fiscal deficit\u2192 More bond issuance \u2192 More supply in market \u2192 Price of existing bonds drop \u2192 Yields of existing bonds increase \u2192 New bonds issued will bear higher coupon rates to match high yields in the market.<\/span><\/i><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<p><strong>Trends seen in the Bond market due to the RBI Policy-<\/strong><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Projected Inflation is much lower than the estimated. As the Inflation and repo rate has come down, the yield curve has also shifted down.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Due to no change in the RBI\u2019s monetary policy and<\/span><span style=\"font-weight: 400;\"> them still sticking to the accommodative monetary policy, <\/span><span style=\"font-weight: 400;\">Yields on <a href=\"https:\/\/goldenpi.com\/government-securities\" target=\"_blank\" rel=\"noopener noreferrer\">G-secs<\/a> have also shown a downward movement.<\/span><\/li>\n<\/ol>\n<p><b>Summary:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">To sum it all, the key policy rates will remain unchanged to maintain the supply of money in the economy, and also to revive and sustain growth, retaining its accommodative policy stance and supporting the \u201cuneven economic recovery\u201d in the wake of the Covid pandemic. There is no change in the rates of the monetary instruments. Believing in keeping inflation in an appropriate range, RBI will infuse money as much as possible to facilitate growth and capital expenditure. Higher <a href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/how-bond-price-impact-yield\/\" target=\"_blank\" rel=\"noopener noreferrer\">bond yields<\/a> not only put pressure on interest rates but also lead to a rise in lending rates.<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">Let us all believe in our strengths and be optimistic about what is yet to come.<\/span><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As the title suggests, the RBI monetary policy is a policy formulated by the central bank, i.e. Reserve Bank of India or&hellip;<\/p>\n","protected":false},"author":4,"featured_media":3558,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[150],"tags":[],"class_list":["post-3555","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-market-view","post_format-post-format-gallery"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>RBI MONETARY POLICY 2022-2023 - GoldenPi | Blogs<\/title>\n<meta name=\"description\" content=\"RBI MONETARY POLICY 2022-2023-On 10th February 2022, RBI\u2019s Monetary Policy Committee(MPC) announced its monetary policy on an assessment of the current macroeconomic situation such as employment, inflation, productivity, interest rates, the foreign trade deficit.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/goldenpi.com\/blog\/market-view\/rbi-monetary-policy-2022-2023\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"RBI MONETARY POLICY 2022-2023 - GoldenPi | Blogs\" \/>\n<meta property=\"og:description\" content=\"RBI MONETARY POLICY 2022-2023-On 10th February 2022, RBI\u2019s Monetary Policy Committee(MPC) announced its monetary policy on an assessment of the current macroeconomic situation such as employment, inflation, productivity, interest rates, the foreign trade deficit.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/goldenpi.com\/blog\/market-view\/rbi-monetary-policy-2022-2023\/\" \/>\n<meta property=\"og:site_name\" content=\"GoldenPi | Blogs\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/goldenpitech\" \/>\n<meta property=\"article:author\" content=\"goldenpitech\" \/>\n<meta property=\"article:published_time\" content=\"2022-02-21T06:53:53+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-09-30T05:53:58+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/02\/18070256\/Blog-2_11zon.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"627\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Abhijit Roy, CEO &amp; 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