The RBI's current monetary policy reflects a nuanced response to evolving macroeconomic dynamics. While the repo rate remains unchanged at 6.5%, the policy undertone reveals a calibrated withdrawal of accommodation, signaling a shift from pandemic era stimulus.
The RBI's liquidity management has transitioned from passive surplus absorption to active using variable rate reverse repo (VRRR) operations, amid concerns of global spillovers and domestic inflationary pressures.
The policy indicates a forward looking stance, focusing on anchoring inflation expectations rather than reacting to transient price shockes. The monetary transmission remains uneven, with sectoral divergences in credit uptake and lending rates.
Furthermore the policy indirectly emphasizes macro prudential regulation and financial stability, acknowledging risks from global interest rate differentials, capital flows and currency volatility.
This reflects an integrated policy framework balancing inflation targeting with broader financial resilience in a globally uncertain environment.
Which of the following reflects the RBI's strategy in managing transient inflation shocks?