RBI MPC Meet November 2022: Reserve Bank of India Governor Shaktikanta Das told in the meeting today that the bank has failed to keep inflation below 6 per cent in the country. RBI said on 3 November that a separate meeting of the Monetary Policy Committee has been held. There has been a discussion on the draft of the report, which the central bank is going to send to the government. This meeting has been held under the provisions of Section 45ZN of RBI Act, 1934 and RBI MPC & Monetary Policy Process Regulations-2016.
report will be sent to the government in 1 month
Now RBI will tell the central government why it has not been able to keep inflation under control. According to the RBI rules, the central bank has to submit its report to the central government within 1 month from the date of failure to meet the inflation target. Inflation data for September was released on October 12. This confirmed the failure of RBI’s efforts to control inflation.
Expected to come down to 4 percent in 2 years
Let us tell you that Central Bank Governor Shaktikanta Das has expected inflation to come down to 4 percent in 2 years. RBI’s next monetary policy will come on December 7. MPC meeting will start on 5th of next month.
35-50 basis points increase
Mahendra Kumar Jaju, Chief Investment Officer (Fixed Income), Mirae Asset Investment Managers, says that the RBI may increase the interest rate by 35-50 basis points in the next meeting of the monetary policy. Before this, he will look at the domestic and global factors. The effect of increasing the Federal Reserve’s interest rate by 0.75 percent will be on the decision of the RBI.
These members were present
The meeting was chaired by RBI Governor Shaktikanta Das. In this all the members of MPC – Michael Debabrata Patra, Rajeev Ranjan, Shashank Bhide, Ashima Goyal, Jayant R.Verma participated. Huh. RBI has failed to keep inflation below 6 per cent for three consecutive quarters.
this is the rule
As per RBI rules, the RBI bank will have to send its report to the central government if it fails to stop inflation from rising. In this report, RBI will have to tell by when inflation will be controlled. Retail inflation has risen to 7.41 per cent in September.
what was the effect
RBI has fixed 2-6 per cent band for inflation. Retail inflation has been outside this band for the last 3 quarters. The central bank says that the average inflation can be 6.7 percent in this financial year. After this, it is expected to come down to 5 percent in April-June next year. This will be close to the target band of RBI.