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

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

RBI to hold special Monetary Policy Committee meeting: 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. 

RBI to hold special Monetary Policy Committee meeting on November 3 as inflation stays above target
The Reserve Bank of India has called a special meeting of the Monetary Policy Committee on November 3. Image Source: PTI

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. 

 

"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.

 

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) 

Written By: ZeeBiz WebTeam
Updated: Thu, Oct 27, 2022
07:24 pm
New Delhi, ZeeBiz WebDesk
RELATED NEWS
Bank Holidays in February 2024: Banks to open for 18 days in February, check full list here Bank Holidays in February 2024: Banks to open for 18 days in February, check full list here
Zomato gets RBI approval to operate as 'online payment aggregator' Zomato gets RBI approval to operate as 'online payment aggregator'
RBI issues guidelines to trace customers with inoperative accounts, unclaimed deposits RBI issues guidelines to trace customers with inoperative accounts, unclaimed deposits
2023 Recap: A look at 11 key developments in Indian financial markets 2023 Recap: A look at 11 key developments in Indian financial markets
Piramal to adjust Rs 3,164 cr AIF exposure to comply with new RBI order Piramal to adjust Rs 3,164 cr AIF exposure to comply with new RBI order

By accepting cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

x