With the government drawing the final contours of the proposed Monetary Policy Committee (MPC), the panel may decide the policy rate scheduled to be announced on October 4, a senior finance ministry official told reporters here on Wednesday.
“It should take about a month to finalise the external members for MPC. We are hoping that the next monetary policy is conducted through MPC but that will depend on how soon the ACC (Appointments Committee of the Cabinet) ratifies the three external members,” the official said.
The finance ministry has submitted a list of potential candidates to the Cabinet secretary which comprises of economists, technocrats and bureaucrats, the official said.
MPC has been assigned with the task of deciding the policy rate to achieve a targeted level of inflation, and it would be headed by the RBI Governor alongside the deputy governor in charge of monetary policy and another central banker along with three government nominees as members.