RBI prefers indirect policy instruments

The Reserve Bank of India's governor, Yaga Venugopal Reddy, said on Monday 2 April in a speech that the RBI has a policy preference for indirect instruments to give effect to its monetary policy.

"Reliance on direct instruments has been reduced and a policy preference for indirect instruments has become the cornerstone of current monetary policy operations," Reddy said in a speech delivered in Athens, "The Reserve Bank has been increasingly on a mix of market based instruments and changes in r