Monetary Policy

What is Monetary Policy?
Monetary policy is the deliberate attempt made by the Reserve Bank to influence the supply of money and the level of interests. Monetary policy is involved with the setting of the interest rates for loans. Moreover, other interest rates are affected by monetary policy. Therefore, it affects all kinds of economic and financial decisions people made in the country. In other word, it influences the behavior of people who borrow and lend money in the financial market. It is under the control of the Reserve Bank, not the g...