RBI MPC Meeting: The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) will have six meetings in the next financial year i.e. 2023-24 for the bi-monthly monetary policy review. The central bank said in a statement that the first meeting of the interest rate-fixing committee for the next financial year would be held from April 3 to 6. The RBI governor announces the bi-monthly monetary policy after the MPC deliberates on the prevailing domestic and economic conditions. The meeting is of three days. Please tell that according to the rules, it is mandatory to hold the MPC meeting 4 times. However, the committee has the permission to increase or decrease the meeting as per the requirement. Every time there is a meeting, there is a change in the repo rate. With the change in the repo rate, there is an impact on the loan received from the bank. They change the interest rate with the increase or decrease in the repo rate.
This is the schedule of the meeting to be held in this financial year
According to the timetable released by the RBI on Friday, the first bi-monthly policy meeting of the next financial year will be held on April 3, 5 and 6. After that the second meeting will be held on June 6, 7 and 8. The third meeting will be held from August 8 to 10, the fourth meeting from October 4 to 6 and the fifth from December 6 to 8. The sixth bi-monthly meeting of the MPC will be held from February 6 to 8, 2024.
What does the constitution say about this committee?
The Reserve Bank of India Act 1934 (which was amended in 2016) states that the RBI is entrusted with the responsibility of conducting monetary policy to maintain price stability keeping in mind the objective of development. In simple language, meetings have to be held from time to time to maintain a balance between the rising inflation in the country and the suddenly decreasing demand for the same in the market. Under Section 45ZA, the RBI, in consultation with the Central Government, sets an inflation target once every five years and notifies it in the Official Gazette. The last time this determination was made on March 31, 2021, in which from April 1, 2021 to March 31, 2026, the rate of inflation in the country was fixed at a maximum of 6 percent and a minimum of 2 percent. That is, the target of CPI (Consumer Price Index) is 4 percent. Please tell, this committee consists of a 6-member team.
[ad_2]