RBI Grade B Monetary Policy

The RBI Policy Corridor, Simply

5 min read

Repo, SDF and MSF as a corridor that steers overnight rates.

The policy corridor is the band in which the RBI wants overnight money-market rates to trade. The repo rate sits inside that band.

Lesson objectives

  • Name the ceiling and floor of the corridor.
  • See why liquidity operations matter as much as the rate.

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