Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusinessEconomy

Urjit Patel headed MPC to decide on first monetary policy of FY19 on Apr 4/5

The Reserve Bank, which has been tasked to restrict inflation at 4 percent (plus/minus 2 percent), has retained the key short term lending rate (repo) at 6 percent in its last three bi-monthly policy reviews citing inflationary concerns.

March 21, 2018 / 04:12 PM IST
Another bone of contention between the RBI and the government has been the latter's suggestion to start a payments regulator outside the purview of the RBI. (Image: Reuters)

Another bone of contention between the RBI and the government has been the latter's suggestion to start a payments regulator outside the purview of the RBI. (Image: Reuters)

Reserve Bank Governor Urjit Patel and five other experts on the MPC will take a call on changing interest rate in the backdrop of declining retail interest rate when they meet here on April 4-5 to decide the first bi-monthly monetary policy of the next fiscal.

The Reserve Bank, which has been tasked to restrict inflation at 4 percent (plus/minus 2 percent), has retained the key short term lending rate (repo) at 6 percent in its last three bi-monthly policy reviews citing inflationary concerns.

"...the Monetary Policy Committee will meet six times during 2018-19," the RBI said while releasing the calender of bi-monthly meetings for 2018-19.

The first meeting is scheduled on April 4 and 5 and the last of the fiscal on February 5 and 6. The policy statement will be issued in the afternoon of April 5.

As per the Reserve Bank of India Act, 1934, the central bank should organise at least four meetings of the Monetary Policy Committee in a year. The meeting schedule of the MPC for a year should also be published at least one week before the first meeting in that year.

The retail inflation based on the Consumer Price Index (CPI), which the RBI factors in while arriving at policy rate, fell to a 4-month low of 4.44 percent in February on cheaper food articles and lower cost for fuel. It was at 5.07 percent in January, though in February 2017 CPI was 3.65 percent.

Industry wants that RBI should reduce the interest rate to give a boost to the Index of Industrial Production (IIP) which has started moving northwards.

It has also been argued that the RBI can take bold steps as both retail and wholesale inflation is on downside.

Patel headed MPC has two other representatives from RBI -- Deputy Governor Viral Acharya, Executive Director Michael Debabrata Patra. There are three external members -- Chetan Ghate, Pami Dua and Ravindra Dholakia.

PTI
first published: Mar 21, 2018 03:39 pm

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347