About the course

Duration: 60 minutes
Tutorial Summary:
This power-packed session is your one-stop introduction to how inflation, interest
rates, and RBI’s monetary policy shape India’s economy. In simple terms and with
real-life case studies, we break down how inflation is measured, what drives interest
rate changes, and how the RBI uses its monetary tools to balance growth with price
stability. Perfect for finance students, aspirants of government/competitive exams, or
anyone seeking clarity on the RBI’s policy toolkit, this session combines theory with
action—giving you both the why and the how behind India’s economic decisions.
Key Highlights:
 Introduction to Inflation and Interest Rates: Basic definitions, link between
inflation and rates
 Inflation – Causes and Types: Demand-pull, cost-push, and structural
inflation
 Interest Rates – Concepts and Components: Repo, reverse repo, base
rate, and transmission
 Role of RBI in Monetary Policy: Governance role, autonomy, and
macroeconomic mandates
 How RBI Measures Inflation: CPI, WPI, core inflation – what’s tracked and
how
 RBI’s Monetary Policy Tools: Policy rates, CRR, SLR, OMOs, liquidity
management
 Growth vs Price Stability: The classic trade-off central banks face
 Inflation Targeting Framework: India’s 4 (+/-2)% model—how targets are
set and reviewed
 Case Studies – India in Action: Examples of rate hikes/cuts and policy
impact
 Key Takeaways & Final Summary: Summary of tools, frameworks, and what
learners should track