03 Nov , 2022 By : Monika Singh
RBI Monetary Policy Committee Meeting Live Updates: The Reserve Bank of India’s monetary policy committee (MPC) is scheduled to meet in an off-cycle meeting today, November 3, laying down an official explanation to the central government as to why it failed to keep inflation within the tolerable target band of 2-6 per cent for three consecutive quarters. The consumer-based inflation for the month of September spiked to a five-month high of 7.41 per cent. RBI governor Shaktikanta Das will announce the MPC meet outcome shortly. The six-member committee, chaired by Das, will hold the additional, off-cycle meeting for the first time since its establishment in 2016.
“Markets, citizens should know MPC’s decision. But letter to the government (after failure) is sent under law. I don’t have the privilege or authority or luxury to release it to the media before the addressee gets it
“With monetary policy actions and stances undergoing a regime shift in advanced economies, financial conditions have tightened across markets and accentuated financial stability risks. In an uncertain environment, the Indian economy has been growing steadily drawing strength from its macroeconomic indicators, buffers.”
“The upcoming impromptu meeting by the RBI on 3rd Nov’22 is going to be more about inflation than interest rates. The rate-setting panel has to send out a letter to the government mentioning the reasons with regards to missing out on its inflation target. They also have to mention the counter-actions that it prepares to undertake to bring the inflation back in its targetted zone.
“We don’t think the MPC will be announcing any rate action. The meeting will focus on drafting and finalizing the report required to be submitted to the central government for failure to comply with the inflation target band of 2-6% for three consecutive quarters”.
RBI MPC’s last meeting highlighted a hawkish stance wherein five out of the six members voted for 50 basis points interest rate hike. In all, the RBI has hiked the repo rate by 190 basis points since April 2022 in efforts to tame the rising inflation.
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