RBI Schedules Additional MPC Meeting On November 3

The Reserve Bank of India today announced that the bank has scheduled an additional Monetary Policy Committee (MPC) meeting that will take place on November 3, 2022.

"Under the provisions of Section 45ZN of the Reserve Bank of India (RBI) Act 1934, read along with the Gazette notifications S.O.2215(E) dated June 27, 2016 and S.O.1422(E) dated March 31, 2021 and the Regulation 7 of the RBI Monetary Policy Committee (MPC) and Monetary Policy Process Regulation, 2016, an additional meeting of the MPC is being scheduled on November 3, 2022," Yogesh Dayal, Chief General Manager, RBI stated in a release today.

The RBI organized its latest MPC meeting on September 30 where the central bank hiked the repo rate by 50 basis points to 5.90%, to control the mounting inflation rate in India. The recent inflation rate has been above the RBI's quarterly projections in the bi-annual monetary policy report (MPR), in the last 8 out of the last 10 quarters until September. The retail inflation gain is standing above the 4%-6% mandated target band since January.

Hence, the RBI will have to write to the government the reasons why did the central bank fail to control the inflation rate within the mandated target. Also, the RBI might not hike the repo rate, as it has already failed to control the inflation rate within the target.