Home  /  Daily Current Affairs  /  29-10-2022 / Monetary Policy Committee (MPC) meeting on Inflation Targeting

Monetary Policy Committee (MPC) meeting on Inflation Targeting

Posted on October 29, 2022 by admin1  86

In News

  • The Reserve Bank of India (RBI) said that it would hold an additional Monetary Policy Committee (MPC) meeting recently.

Key Points

  • Reason for Additional Meeting: 
    • The RBI has failed to maintain the consumer price index (CPI) inflation target within the 2-6 percent band for three consecutive quarters (January to September 2022)
  • The Regulation 7 of the RBI MPC and Monetary Policy Process Regulations, 2016:
    • States that a separate meeting is required to be scheduled as part of the normal policy process to discuss and draft the report to be sent to the government.
  •  Section 45ZN of the Reserve Bank of India (RBI) Act, 1934: 
    • States that in case the RBI fails to meet the inflation target, it has to present a report to the government explaining the reasons for the failure. 
    • In the report, the central bank will have to mention the remedial actions it proposes to take.

About Monetary Policy Committee (MPC)

  • Constituted by: RBI under section 45ZB of the Reserve Bank of India (RBI) Act, 1934.
  • Mission: Fixing the benchmark policy interest rate (repo rate) to restrain inflation within the particular target level (2% to 6%). 
  • Chairman: the Governor of RBI
  • MPC meetings:
    • Currently, the MPC meets six times in a financial year, which is every two months. 
    • The schedule of the MPC meetings for the entire financial year is announced in advance.
    • The monetary policy is published after every meeting with each member explaining his opinions. 

Source: IE

 
Previous article Kushanas & their coins
Next article First amendment to Constitution

Other News of the Day

In News Recently, the Union Home Minister announced at the two-day ‘Chintan Shivir’ (brainstorming session) in Faridabad that all states in the country will have National Investigation Agency (NIA) offices by 2024 as a strategy to counter terrorism. About National Investigation Agency (NIA) The National Investigation Agency (NIA) is the primary counter-terrorist task force of...
Read More

In News The Reserve Bank of India (RBI) said that it would hold an additional Monetary Policy Committee (MPC) meeting recently. Key Points Reason for Additional Meeting:  The RBI has failed to maintain the consumer price index (CPI) inflation target within the 2-6 percent band for three consecutive quarters (January to September 2022) The Regulation...
Read More

In News Recently, speakers of Tulu and Kodava have opposed the draft of the Kannada Language Comprehensive Development Bill, 2022. Key Points About Bill: It aims to ensure the extensive use and propagation of Kannada.  The Bill provides for penalties for violations of rules, with fines prescribed for various offences. S.R. Bannurmath Committee: In a...
Read More

In News Recently, the World Health Organization released its 2022 version of Global TB report.   It provides a comprehensive and up-to-date assessment of the TB epidemic, and of progress in prevention, diagnosis and treatment of the disease, at global, regional and country levels.    About Tuberculosis TB is the second deadliest infectious killer after Covid-19 which...
Read More

Context Jharkhand Governor sought a “second opinion” in the office-of-profit case involving the demand for dismissal of the Chief Minister. About Following a petition by the BJP seeking CM's disqualification from the Assembly in the office-of-profit case, the Election Commission had sent its decision to the Jharkhand governor, sparking a political crisis in the state....
Read More

In News Recently, for the first time in New Zealand’s history, a majority of lawmakers are women making the total count to 60 women and 59 men. About the recent news  The milestone places New Zealand among a half-dozen nations in the world that this year can claim at least 50% female representation in their...
Read More

In Context Prime Minister recently said that Central laws such as the Unlawful Activities (Prevention) Act (UAPA) had given an impetus to the system in a decisive fight against terrorism. More about the news PM’s push for UAPA: The Prime Minister said the police should be equipped to face not only those Naxals who hold...
Read More

In Context The Prime Minister recently mooted the idea of “one nation, one police uniform”.  More about the news Chintan Shivir & the idea of “one nation, one police uniform”: The PM addressed the first Chintan Shivir (brainstorming session) of state home ministers and top police officers. He made it clear that he is not...
Read More