Accommodative Monetary Policy

  • The Reserve Bank's Monetary Policy Committee (MPC) members, in their recent meeting, expressed the need to continue with the accommodative monetary policy (AMC) to ensure that economic recovery gains greater traction and becomes broad-based.
  • Also known as easy monetary policy or loose credit policy, accommodative monetary policy occurs when a central bank (RBI) attempts to expand the overall money supply to boost the economy when growth is slowing (as measured by GDP).
  • The policy is implemented to allow the money supply to rise in line with national income and the demand for money.

Monetary ....

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