The Reserve Bank of India recently reconstituted the Monetary Policy Committee (MPC) in accordance with the provisions of the RBI Act. The MPC, consisting of six members, plays a crucial role in making decisions regarding the country's monetary policy. Among the members are key figures such as Shaktikanta Das, the Governor of the Reserve Bank of India, who serves as the Chairperson ex officio.
The composition of the MPC includes members from both the RBI and representatives appointed by the Central Government. The external members are selected through a process involving a selection panel led by RBI Governor Shaktikanta Das, Cabinet Secretary T.V. Somanathan, and Economic Affairs Secretary Ajay Seth, with final approval from the Prime Minister's office. These members are appointed for a four-year term, effective immediately or until further orders.
The upcoming MPC meeting scheduled to commence on October 7 will address significant decisions on interest rate revisions, with the outcome expected to be disclosed on October 9. The current repo rate set by the RBI stands at 6.5 percent, and analysts anticipate that there may not be a reduction in interest rates as the focus remains on managing inflation in alignment with the 4 percent medium-term target rate. Over the previous nine MPC meetings, the RBI has maintained the repo rate unchanged, emphasizing efforts to control inflation levels within the prescribed tolerances.