RBI advances MPC meeting by a day to 4 June

INDORE, India - May 18, 2018 - PRLog -- The Reserve Bank of India (RBI) has advanced the Monetary Policy Committee (MPC) meeting by a day to June 4 and also increased the duration to 3 days owing to 'Certain Administrative Exigencies', as termed.

In a statement, the Central Bank stated that the meeting would be held from June 4 to 6, in place of the scheduled dates of June 5 & 6.  However, there is no change in the dates of all other Monetary Policy Committee meetings for the year 2018-19, as per the RBI.

The 6-member Monetary Policy Committee, headed by the RBI governor, sets the benchmark interest rate.

For those amateur, the 6-member committee of Reserve Bank, has been assigned with the task of setting the bench-mark interest rate following an amendment which was passed through the Finance Act, 2016.

Prior to the establishment of the Monetary Policy Committee, the RBI Governor was in charge for setting the interest rate.

On 21 March, the RBI had announced the schedule of the bi-monthly Monetary Policy Committee meetings for the entire financial year 2018-2019.

The first bi-monthly monetary policy meeting of the financial year was held on 4 to 5 April and the panel committee had decided to keep up status-quo on the interest rate showing inflationary concerns. The MPC had kept the repo rate (the rate at which the central bank of a country lends money to commercial banks in the event of any deficit of funds) and reverse-repo rate (the rate at which the central bank of a country borrows money from commercial banks within the country) unchanged at 6% and 5.75% respectively.   The Committee also projected real GDP growth of 7.4% in FY19, as against 6.6% in FY18.

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