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So, what exactly *is* **monetary policy**? Simply put, it's the set of actions undertaken by a central bank – in India's case, the RBI – to manipulate the money supply and credit conditions to stimulate or restrain economic activity. Think of it as the central bank's toolkit for managing the economy. The primary goals of monetary policy are usually pretty straightforward: controlling **inflation**, promoting **economic growth**, and maintaining **financial stability**. The RBI achieves these objectives primarily by adjusting **interest rates** – the cost of borrowing money – and through various other tools, such as managing the **cash reserve ratio (CRR)** and **statutory liquidity ratio (SLR)**.
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