look news india
Mumbai, 07 October (HS). The three-day review meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) started here on Monday. This meeting organized under the chairmanship of RBI Governor Shaktikanta Das will end on October 9. Governor Shaktikanta will give information about the decision of this meeting on Wednesday, October 9. However, this time also there is no possibility of change in the policy interest rate.
According to economic experts, the Reserve Bank will not make any change in the policy rate repo rate this time too. Experts say that this time also the MPC will not follow the Israel-Iran war situation and the US Federal Reserve, which has cut the benchmark rates by up to 0.5 percent. But, experts believe that there is scope for some relaxation in the MPC meeting to be held in December.
Six-member MPC will decide the policy rate
The central government on October 1 appointed three new external members to the Monetary Policy Committee, including Ram Singh, Saugata Bhattacharya and Nagesh Kumar. The MPC of the Reserve Bank consists of six members, including central bank Governor Shaktikanta Das, three members including Deputy Governor Michael Patra and Executive Director Rajeev Ranj.
What is policy rate i.e. repo rate?
Repo rate is the rate at which the Reserve Bank lends money to commercial banks in case of any shortage. RBI repo rate is used by the monetary authority to control inflation. Earlier, in the MPC meeting held in August, RBI had not made any change in the policy rate repo rate for the 9th consecutive time. The Reserve Bank has kept the repo rate unchanged at 6.5 percent from February 2023. The Reserve Bank had last increased the repo rate by 0.25 percent, which is currently at 6.50 percent. Before Covid-19, the repo rate was at 5.15 percent on February 6, 2020.