Key Points:
- RBI will announce the final Monetary Policy on October 9.
- The event was rescheduled on September 28th.
- The postponement took place due to the change in the panel.
- MPC is authorized to maintain annual inflation at 4 % until March 31, 2021, with an upper tolerance of 6 % and a lower tolerance of 2 %.
On September 28th, The Reserve Bank of India (RBI) postponed the Monetary Policy Committee (MPC) meeting as appointment of independent member was delayed. The Reserve Bank of India said in a release that the Monetary Policy will be announced on October 9 as the next meeting scheduled for MPC is from October 7 to October 9.
The Prime Minister of the country heading the Appointments Committee of the Cabinet (ACC) has approved the names of the economists.
As per the RBI Act, the three new members would have four-year terms.
To maintain the annual inflation at 4 % until March 31, 2021, with an upper tolerance of 6 % and a lower tolerance of 2 %, the Monetary Policy Committee has been given the authorization to do so.
Esteemed Economists like Ashima Goyal, Jayanth R Varma and Shashanka Bhide are the newly appointed personalities. These economists will replace the four year old panel since September 29, 2016 that comprised of Chetan Ghate, Pami Dua, and Ravindra Dholakia. Their term had run out after the preceding policy meet on August 6.
The Central Government appoints the external members of the MPC. Persons of Skill, Integrity and Repute, having information and experience in the field of Economics, Banking, Finance or Monetary Policy are chosen.
The government denied RBI’s entreat for the extension of the tenure of the external panel members. The supplement time was asked due to the Covid-19 situation. Due to this, for the first time ever, The Reserve Bank of India had to reschedule its Monetary Policy review.
RBI issued a Press Release on its official page:
https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=50463
