Tribune News Service
New Delhi, November 3
The RBI’s Monetary Policy Committee (MPC) met on Thursday to prepare an official explanation to the Central government as to why it failed to keep inflation within the tolerable target band of 2-6% for three consecutive quarters.
“A separate meeting of the Monetary Policy Committee (MPC) was held on November 3, 2022 to discuss and draft the report to be sent to the Government by the Reserve Bank of India (RBI) under the provisions of Section 45ZN of the RBI Act, 1934 and Regulation 7 of RBI MPC and Monetary Policy Process Regulations, 2016,” the central bank said.
Will propose remedial actions
This is the first time since its formation in 2016 that the meeting of Monetary Policy Committee was held under Section 45ZN of the RBI Act under which it has to give an explanation for its inability to control inflationThe report will focus on the reasons behind failure to achieve inflation target, remedial actions and the proposed time frame to bring inflation to midpoint. The report, however, will not be made public
Section 45ZN of RBI Act deals with failure to maintain the inflation target.
The meeting was chaired by RBI Governor Shaktikanta Das and attended by all MPC members — Michael Debabrata Patra, Rajiv Ranjan, Shashanka Bhide, Ashima Goyal and Jayanth R Varma.
The report will focus on the reasons behind failure to achieve inflation target, remedial actions and the proposed time frame to bring inflation to midpoint. The report, however, will not be made public.
RBI Governor Shaktikanta Das has defended the central bank’s policies to control inflation and has claimed that the economy could also have taken “complete downward turn”.
The consumer-based inflation for September had spiked to a five-month high of 7.41%. RBI’s next MPC and the last one for this calendar year will be held from December 5 to 7.
(This story has not been checked by JK Mega and is auto-generated from other sources)