RBI’s 3-day meeting begins today
New Delhi:
The three-day Monetary Policy Committee meeting of the Reserve Bank of India is starting from today.
Financial markets will closely watch the Committee’s rate hike stance, if any, as inflation is still above the target band of 6 per cent.
The central bank had raised the key policy rate by 190 basis points to 5.9 per cent since May to cool domestic retail inflation, which has remained above the RBI’s upper tolerance limit for three quarters. Retail inflation in October stood at 6.77 per cent as against 7.41 per cent in the previous month.
Under the flexible inflation targeting framework introduced in 2016, if CPI-based inflation is outside the 2-6 per cent range for three consecutive quarters, the RBI is deemed to have failed to manage price increases.
An out-of-turn meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India was held in early November to discuss and draft a report to be sent to the central government for failing to uphold the inflation mandate. it was done.
The meeting was called under Section 45ZN of the Reserve Bank of India (RBI) Act 1934, which deals with steps to be taken by the central bank if it fails to meet its inflation-targeting mandate.
Further details about the special meeting are not yet officially in the public domain.
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