RBI Grade B 2025 | Answer Outline | Inflation Control Measures: Analyzing RBI’s Tools and Their Effectiveness

Inflation, characterized by a sustained increase in the general price level of goods and services, poses significant challenges to economic stability. In India, the Reserve Bank of India (RBI) is entrusted with the dual mandate of maintaining price stability and fostering economic growth. To achieve this, the RBI employs a suite of monetary policy tools designed to regulate liquidity, control inflation, and ensure financial stability.