Monetary Policy Committee to meet six times in the new financial year

The Reserve Bank of India released a statement on Friday with regards to the Monetary Policy Committee meeting (MPC) scheduled for 2019-2020. As per reports, the MPC, the authority that takes decisions on key interest rates in the country, will meet six times in the new financial year. The very first meet is slated for April 2 to 4, 2019. The Committee is expected to announce the first policy on April 4.

The consequent meets for 2019 are scheduled for June 3, 4 and 6; August 5-7; October 1, 3 and 4; December 3-5; and the final session is to take place next year in 2020 between February 4-6.

The RBI Governor Shaktikanta Das will head the Committee along with three external members and two representatives from the central bank. Indian Statistical Institute professor Chetan Ghate, Indian Institute of Management Ahmedabad professor Ravindra H Dholakia and Delhi School of Economics Director Pami Dua will comprise the external member panel.

The Monetary policy decisions by the Reserve Bank have far-reaching implications for every stratum of the economy, impacting investors, borrowers and savers alike. The rate decisions take into account growth, stability, inflation and the banking stability along with the need for a stable exchange rate, etc.

The MPC meetings and its policies are crucial in the present times given the global and economic outlook have dived the last policy. Looking at the domestic indicators led by the impact of the high oil prices, weak global demand, falling rupee and the strain in the financial markets, the MPCs role will be pivotal in matters of growth and India’s inflation concerns.