Monetary Policy Committee To ‘Meet Before October 4’ Rate Decision: Shaktikanta Das
Monetary Policy Committee is now the boss of monetary policy formulation at the RBI
The Monetary Policy Committee (MPC), which was appointed last week, will meet before the Reserve Bank of India’s policy review on October 4, said Shaktikanta Das, economic affairs secretary, Government of India on the sidelines of an event in Mumbai.
“Yes, certainly, the MPC has been constituted and it is our expectation and I’m quite sure... Before October 4 the MPC will certainly meet and the committee will give their recommendations, based on which the RBI will take a decision,” Das said. He didn’t specify whether the MPC would actually vote on the monetary policy decision this time.
On Thursday, the government appointed three members to the MPC, namely Chetan Ghate, Pami Dua, and Ravindra Dholakia. The other three members of the six-member committee are RBI Governor Urjit Patel, Deputy Governor R Gandhi, and Michael Patra, executive director at the central bank.
Each of the six members will cast one vote to determine the course of monetary policy. In the case of a tie, the governor will have a casting vote.
This system of monetary policy formulation replaces the system where the RBI governor is the sole authority responsible for setting the policy.
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