A Study on the Transmissions in Indian Monetary Policy

Abstract

The Reserve Bank's ability to adjust the way its monetary policy settings affect inflation and economic activity is known as monetary policy transmission. The time and size of the economic impact are both subject to great unpredictability due to the complexity of this process. Transmission, to put it simply, happens when modifications to monetary policy have an impact on the economy's interest rates. Interest rate changes affect both inflation and economic activity. These two phases are described in this explanation along with some of the main ways that monetary policy has an impact on the Australian economy.