RBI’s Monetary Policy
RBI’S MONETARY POLICY
- The MPC (Monetary Policy Committee) of the Reserve Bank of India has recently opened its latest Monetary Policy
- GDP growth has been estimated to 6.8%.
- RBI holding a repo rate at 6.5% for the ninth time in a row.
MPC – Monetary Policy Committee
- The Finance Act 2016 amends the RBI Act 1934 and provides for a statutory institution called MPC.
- RBI Act Section 45ZB – The central government is empowered to constitute a 6 member MPC.
- Functions – Fixing the benchmark policy rate (REPO) on targeted level.
- The meetings shall be conducted only in the presence of the Governor or Dy Governor.
- MPC takes vote according to the majority vote, in case of tie, The governor has a casting vote privilege.
- The decision of MPC is binding on the RBI.
