Reserve Bank of India MPC Meeting has been scheduled from 4 October 2023 to 6 October 2023. The RBI released the schedule of the monetary policy committee on Friday. The meeting will be under the supervision of Governor Shaktikanta Das.
RBI MPC Meeting
On August 10, the Reserve Bank of India (RBI) left the policy repo rate steady at 6.50 percent for the third time in a row, indicating that the rates of interest on housing and car loans will not change. The repo rate, which is the main policy rate used by the central bank to lend to banks, last increased by 25 basis points (bps) in February 2023.
Even though headline CPI (consumer price index) inflation increased to a three-month high of 4.81 percent in June, the six-member Monetary Policy Committee (MPC) did not change the repo rate.
RBI MPC Meeting Schedule
The rate-setting panel will convene from Wednesday, October 4 through Friday, October 6. Shaktikanta Das, the governor of the RBI, will make the announcement at 10 a.m. on Friday during a live livestream of the MPC’s three-day meeting.
|Reserve Bank of India
|RBI MPC 2023
|4 October 2023 to 6 October 2023
|Governor of RBI- Shashikant Das
While there will be agreement that the repo rate would not change from its present level of 6.5%, there will be disagreements within the MPC on the attitude, according to senior economists cited by IANS in its article. We don’t believe there will be any disagreements about the 6-0 decision to suspend the rate.
Who is conducting the RBI MPC Meeting?
Governor Shaktikanta Das will be the ruling person of the MPC, which consists of six people. The other members are RBI Deputy Governor Michael Debabrata Patra, RBI Executive Director Rajiv Ranjan, and Shashanka Bhide, Honorary Senior Advisor at National Council of Applied Economic Research in Delhi, Ashima Goyal, Emeritus Professor at Indira Gandhi Institute of Development Research in Mumbai, and Jayanth R. Varma, Professor at Indian Institute of Management in Ahmedabad. Suman Chowdhury, Chief Economist & Head of Research, at Acuite Ratings, told IANS that, like with the last vote, there is likely to be one dissent in favor of maintaining the current monetary policy, which is 5-1.
RBI Monetary Policy Committee (MPC)
The central government established the MPC which is also known as the Monetary Policy Committee for the crucial discussion. Our honorable governor Srikant Das will take charge of the MPC meeting in 2023 to keep inflation within a specific target level. The Monetary Policy Committee was established with the intention of setting the benchmark policy interest rate (repo rate). The technical advisory group and internal team provide assistance and advice to the RBI governor as she makes decisions about monetary policy.
RBI MPC Member 2023
Shaktikanta Das is the governor of the Reserve Bank of India and the ex officio chair. Debrata Patra is the Bank of England’s deputy governor in charge of monetary policy. The Economic Advisory Council of Prime Minister Narendra Modi includes Ashima Goyal. Rajiv Ranjan will also take care of the charge who is the Bank executive director.
Professor Goyal was a visiting fellow at Yale University in addition to working at the Indira Gandhi Institute of Development Research in Mumbai. Shashanka Bhide is a senior adviser at the National Council for Applied Economic Research, a think tank with offices in New Delhi. She has conducted research on macroeconomics, agriculture, and poverty studies.
Motive of Monetary Policy’s Goals
Financial Policy has the goal of ensuring fair price stability, strong employment, and a quicker pace of economic growth, monetary policy was put into place. The following list includes the four main goals of the monetary policy:
- To balance the economic cycle.
- To provide a fair level of pricing stability.
- For quicker economic growth.
Benefit of RBI MPC Policy
- The method through which a nation’s monetary authority controls the amount of money available in an economy is known as monetary policy.
- In order to ensure price stability and stable exchange prices with other currencies, the Monetary Policy often modifies inflation rates or interest rates.
- The Reserve Bank of India is the country’s central banking institution, and it oversees monetary policy in tandem with the goals of the national government for development.
- The Reserve Bank of India Act, of 1934 grants the Reserve Bank of India the authority to set monetary policy.
- Fiscal policy, which deals with taxation, government spending, and borrowing, is frequently considered distinct from monetary policy, which can be either expansionary or contractionary.