At the same time, RBI is also fine-tuning its operating procedures of monetary policy for effective policy transmission across the financial markets and thereby onto the real economy.
As an outcome, inflation has fallen successively and has averaged below 4 per cent since 2017–18, notwithstanding recent up-tick in inflation driven by food prices, especially the sharp increase in vegetable prices reflecting the adverse impact of unseasonal rains and cyclone. Evolution of monetary policy in line with the changing Theoretical Developments and International Best Practices 19.