RBI’s MPC to meet soon; decision of Nov 3 meeting under wraps contrary to law
The MPC had met on November 3, to discuss what it would tell the central government on the reasons why it was not able to restrain the inflation.
The MPC had met on November 3, to discuss what it would tell the central government on the reasons why it was not able to restrain the inflation.
As retail inflation in India continues to remain above the RBI's comfort zone for the past 10 months, analysts feel that more hikes are expected in the future.
Having failed to keep inflation within its tolerance limit of up to 4 per cent for the past three quarters, the monetary policy committee (MPC) of the Reserve Bank of India (RBI) met on Thursday to draft its response to the government on its inability to do so.
"The 598th meeting of the central board was held under the chairmanship of Governor Shaktikanta Das," the RBI said in a statement.
"As financial conditions tighten, global financial markets are experiencing surges of volatility, with sporadic sell-offs in equity and bond markets, and the US dollar strengthening to a 20-year high," the minutes said.
The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) is expected to raise the policy rate ranging between 35 to 50 basis points (bps) on Friday, experts believe.
The monetary policy committee of the Reserve Bank of India is all set for its bi-monthly review meeting starting today. Like several other central banks, the main focus of the RBI during the three-day-long meet will again remain on containing high inflation.
The rate action is likely to be accompanied by calibrated withdrawal of money market core liquidity surplus.
CPI stands for Consumer Price Index, it measures price changes from the perspective of a retail buyer. It is released by the National Statistical Office (NSO).
The benchmark repurchase (repo) rate has been left unchanged at 4 per cent, Governor Shaktikanta Das said while announcing the decisions taken by the central bank's Monetary Policy Committee (MPC).
