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Monetary Policy is the policy by which RBI controls money supply and credit in the economy.
**Objectives:**
1. Price Stability (primary objective)
2. Economic Growth
3. Exchange Rate Stability
4. Financial Stability
**Quantitative Tools:**
1. **Repo Rate:**
2. **Reverse Repo Rate:**
3. **Cash Reserve Ratio (CRR):**
4. **Statutory Liquidity Ratio (SLR):**
5. **Open Market Operations (OMO):**
**Monetary Policy Committee (MPC):**
Conducted by RBI
Objectives: Price stability, Economic growth, Exchange rate stability
Tools: Repo rate, Reverse Repo, CRR, SLR, OMO
Monetary Policy Committee (MPC)
Inflation targeting framework (4% ± 2%)
RROCS - Repo, Reverse Repo, OMO, CRR, SLR
3+3 = 6 members (3 RBI + 3 External)