The Reserve Bank of India (RBI) on Monday announced that the bi-monthly Monetary Policy Committee (MPC) meeting which was scheduled to take place from September 29 to October 1 is being rescheduled. The new dates of the meeting will be announced shortly, the central bank said.
RBI however did not provide any reason behind the rescheduling of the MPC meeting in its statement.
The interest-setting panel was scheduled to meet for three-days beginning Tuesday for the bi-monthly monetary policy review.
The central bank is awaiting the government’s decision on new external members to the MPC. As per the RBI Act, external members of the MPC have a tenure of four years. The MPC came into existence in October 2016.
The RBI MPC meeting is one of the most important events for the banking system and economy as a whole as the central bank announces key measures and sets its key lending rates (repo and reverve repo rates) to check the inflation rate and assess the money flow in the economy.
This year, it has become all the more important as in the wake of the coronavirus (COVID-19) pandemic, the RBI took various steps such as providing loan moratorium and holding open market operations (OMOs) to provide relief to the borrowers and keep a check at the value of rupee against other major currencies.
Reacting to the news, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said, “In this hour of economic emergency the MPC has to be in place to formulate policy. This delay could have been avoided.”
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