Most news channels and economists continue to dub RBI’s monetary policy as credit policy. Some don’t even mention monetary policy and others say credit and monetary policy.
What is the distinction? Well I would believe there is. Earlier RBI’s policy was called Monetary and Credit Policy as RBI did have policies and interventions in credit market. Now it is the case of RBI just regulating the sector with credit decisions free to the bankers. So, it has become a monetary policy and RBI has dropped the word as well.
I was scanning the RBI’s website and came through this: