RBI CALLS FOR ADDITIONAL MONETARY POLICY MEETING TO DISCUSS INFLATION TARGET

On November 3, 2022, the Reserve Bank of India (RBI) has scheduled a further meeting of the Monetary Policy Committee (MPC) for 2022–2023.

“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 apex bank said in a press note.

It should be noted that the MPC's off-cycle meeting occurs after the RBI's inflation mandate was unsuccessful.

Due to growing inflation worries, the RBI increased the repo rate by 50 basis points to 5.90% at its most recent MPC on September 30.

According to the apex bank, inflation is predicted to stay high in the second half of 2022–2023, hovering around 6%.

According to the MPC meeting minutes, the choice was also made based on an evaluation of the macroeconomic situation as it is now and as it is changing.

The CPI inflation rate increased to 7.41 percent in September, per the data made public on October 12. According to this, the average inflation rate had been outside the range of 2 to 6 percent for three consecutive quarters.

To decide on the rates, the RBI MPC was scheduled to meet the weekend of December 5–7.