RBI to hold special Monetary Policy Committee meeting on November 3 as inflation stays above target

RBI to hold special Monetary Policy Committee meeting: The Reserve Bank of India has called a special meeting of the Monetary Policy Committee on November 3 to prepare a report on its failure to keep retail inflation below 6 per cent for three consecutive quarters.

Zee Business Associate Editor Brajesh Kumar Mishra said, "As the inflation rate has remained above the upper tolerance limit of 6 per cent, the RBI has to answer to the government". "RBI will have to answer in written describing the reasons behind it and what all actions it plans ahead," he added. 

#BreakingNews | #RBI ने 3 नवंबर को #MPC की एडिशनल बैठक बुलाई

MPC की बैठक पहले दिसंबर में होनी थी

अचानक एडिशनल बैठक बुलाने का कारण जानिए ब्रजेश कुमार मिश्रा से...#MonetaryPolicyCommittee | @BrajeshKMZee pic.twitter.com/KSIpFu4PsF

— Zee Business (@ZeeBusiness) October 27, 2022

"Under the provisions of Section 45ZN of the Reserve Bank of India (RBI) Act ...an additional meeting of the MPC is being scheduled on November 3, 2022," the central bank said in a statement on Thursday.

Section 45ZN of the Act deals with failure to maintain the inflation target. Inflation has remained above the upper tolerance limit of 6 per cent for nine straight months or three quarters.

#BreakingNews | #RBI ने 3 नवंबर को #MPC की एडिशनल बैठक बुलाई

MPC की बैठक पहले दिसंबर में होनी थी#MonetaryPolicyCommittee | @BrajeshKMZee pic.twitter.com/xLBQO6Bmsf

— Zee Business (@ZeeBusiness) October 27, 2022

In September, the monetary policy committee (MPC), comprising three members from the RBI and three external experts, raised the key lending rate or the repo rate to 5.90 per cent - the highest since April 2019 - with five out of the six members voting in favour of the hike.

Since the first unscheduled mid-meeting hike in May, the cumulative increase in interest rate now stands at 190 basis points and mirrors similar aggressive monetary tightening in major economies around the globe to contain runaway inflation by dampening demand.

(PTI Inputs)