New Delhi: The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) will meet six times during the next financial year.
According to news by the PTI, the RBI Governor-headed rate setting panel will be holding its first meeting of the next fiscal year from April 6-8.
The MPC declares the bi-monthly monetary policy after deliberations on the prevailing domestic and economic situations.
In a release, the central bank on Wednesday said that the first bi-monthly monetary policy of 2022-23 is scheduled for April 6-8, and next will be held during June 6-8. The third, fourth, and fifth meetings have been scheduled for August 2-4, September 28-30, and December 5-7. The MPC’s sixth bi-monthly meeting is scheduled to be held on February 6-8, 2023.
The committee, which is headed by the governor, has two representatives from the central bank and three external members.
The Centre has tasked the RBI to ensure that inflation remains at 4 per cent with a margin of 2 per cent on the either side.
Meanwhile, according to a report by the Bloomberg, the RBI may have to pay a bigger price for ignoring inflation by tightening interest rates much more aggressively later, like the Federal Reserve is doing now, according to the nation’s largest asset manager.
Rajeev Radhakrishnan, chief investment officer for fixed income at SBI Funds, which manages Rs 4.6 lakh crore ($60 billion), said, “If you don’t normalise gradually and pre-emptively, you may be in a situation down the line where you have to slam on the brakes.”
The RBI has confounded market expectations with its accommodative policy even as inflation breached its 6 per cent limit for two months.
According to the Bloomberg report, SBI Funds warn the global rout may hurt Indian bonds as the central bank downplays inflation risks amid surging oil prices and the market braces for record government borrowing.