Role Of Monetary Policy For Safeguarding Life And Livelihood Of Bottom Of Pyramid In India

Abstract

Covid pandemic has tested the abilities of global leaders and institutions. India has witnessed challenging situation due to Covid pandemic. Saving lives and livelihood became difficult. The paper examines the role of monetary policy in safeguarding the lives and livelihood of bottom of pyramid people in India during Covid and period after revival of economic activities post lock down. Secondary data is used or the study. Data of Repo rate change and inflation is used for the study. It is found that RBI has managed the difficult situation very sensitively taking care of bottom pf pyramid people by infusing liquidity and keeping interest rates at very low
level. At the dame time RBI has acted timely to curb inflation by increasing repo rate after revival of economic activities post lock down. RBI has demonstrated that growth with inclusion is possible by using monetary policy sensibly.