The Reserve Bank of India on Thursday said that an additional meeting of its rate-setting panel, the Monetary Policy Committee (MPC) has been scheduled to take place on November 3, 2022. This will be the second off-schedule meeting of the MPC after a surprise meeting in May.
“Under the provisions of Section 45ZN of the Reserve Bank of India (RBI) Act 1934, read along with the Gazette notifications S.O.2215(E) dated June 27, 2016, and S.O.1422(E) dated March 31, 2021, and the Regulation 7 of the RBI Monetary Policy Committee (MPC) and Monetary Policy Process Regulation, 2016, an additional meeting of the MPC is being scheduled on November 3, 2022,” the RBI said.
Section 45ZN of the RBI Act mandates that in case the inflation target is not met for three consecutive quarters, the RBI has to submit a report to the government explaining the reasons and details of the remedial actions it will be taken to check the price rise.
As per the monetary policy that came into effect in 2016, the central bank is required to ensure retail inflation remains at 4 per cent with a margin of 2 per cent on either side.RBI’s reply to the government, explaining the reasons of its failure to contain inflation up to 6%.