Short Article
15-10-2024 | 12:26 PM
Monetary Policy Committee (MPC)
Recently, the Monetary Policy Committee (MPC) decided to keep the repo rate unchanged at 6.50% for the 10th consecutive time.
Key Highlights
- Current Repo Rate: 6.50%
- Repo Rate: The interest rate at which commercial banks borrow money from RBI.
â–º Monetary Policy Committee
- It is a statutory body constituted under the RBI Act of 1934.
- The committee consists of six members; three are officials of the Reserve Bank of India, and three external members are nominated by the central government.
- Objective: To determine the repo rate and other macroeconomic indicators to achieve the inflation target.
- The MPC is chaired by the RBI Governor.
- Quorum: A minimum of four participants are required for the meeting.
- Each member of the committee has one vote, and in the case of an equality of votes, the Governor has a second or casting vote.
- Each member of the committee writes a statement defining the reasons for voting in favour of, or against the proposed resolution.
- The committee is supposed to meet every 2-2 months and is required to meet at least four times a year.
- Terms and Reappointment: Members of the committee will serve for four years and are not eligible for reappointment.
