New RBI Monetary Policy Committee To Hold First Meeting Under Reconstituted Team

New Delhi, Oct 3 (KNN) The newly reconstituted Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) is set to commence its inaugural meeting on Monday.

The committee, which now includes three newly appointed external members, will conduct deliberations over three days. RBI Governor Shaktikanta Das, who chairs the MPC, is scheduled to announce the outcome on Wednesday, October 9.

Despite the change in composition of external members, analysts widely anticipate that the MPC will maintain the current interest rate. Should this prediction materialise, it would mark the tenth consecutive instance of the RBI holding rates steady.

The last adjustment to the policy rate occurred in February 2023, when it was raised to 6.5 percent.

The MPC comprises both internal and external members. Alongside Governor Das, the internal members include RBI Deputy Governor Michael Debabrata Patra, who oversees monetary policy, and Rajiv Ranjan, Executive Director of the RBI's monetary policy department.

On Tuesday, the government appointed three new external members to the MPC. Ram Singh, Director, Delhi School of Economics, holds a PhD from Jawaharlal Nehru University and completed post-doctoral studies in Economics at Harvard University.

His academic career includes teaching positions at Bucerius Law School, Heidelberg University, and Jawaharlal Nehru University.

Saugata Bhattacharya, a senior fellow at the Centre for Policy Research (CPR), brings over three decades of experience in economic and financial markets analysis, policy advocacy, and related fields. Prior to joining CPR, he served as chief economist and executive vice president at Axis Bank.

Nagesh Kumar, currently the Director and Chief Executive of the Institute for Studies in Industrial Development (ISID), previously held positions at the United Nations Economic and Social Commission of Asia and the Pacific (UNESCAP) and as Director-General of the Research and Information System for Developing Countries (RIS).

It is noteworthy that the extended tenures of two ex-officio members, Governor Das and Deputy Governor Patra, are set to conclude in December and January, respectively.

The upcoming MPC meeting and its outcome are likely to be closely watched by financial markets and economic observers for insights into India's monetary policy direction.

(KNN Bureau)