Inflation and RBI There is a lag between changes to monetary | 𝗧𝗵𝗲 𝗛𝗶𝗻𝗱𝘂 Editorial
Inflation and RBI
There is a lag between changes to monetary policy and its effect on economic activity and inflation because households and businesses take time to adjust their behaviour. Some estimates suggest that it takes between one and two years for monetary policy to have its maximum effect.
