The Monetary Policy Committee (MPC) of the Reserve Bank of India will hold a special meeting on the sidelines of its scheduled meetings on Thursday. In this special meeting, the reasons for inflation not coming under control even after four hikes in the repo rate will be discussed. Also, after this meeting, the Monetary Policy Committee will write a letter to the government informing about the reasons for not controlling inflation.
The central bank aims to keep inflation within 2-6 percent. Talking about the medium-term general target, the standard target of RBI is 4 percent, with a scope of increase or decrease of 2 percent.
Why is the meeting taking place?
RBI's rules state that if the inflation target is not met for three consecutive quarters, the central bank submits a report to the government, detailing the reasons for the failure to achieve the inflation target, and what action will be taken. And what was their impact? RBI will also have to give an estimated time frame by which it can control inflation.
The special meeting is being held for the first time since the MPC's inception in 2016, as the committee has failed to keep retail inflation within the 2-6% band for three consecutive quarters. Retail inflation has remained above 6% since January and rose to a five-month high of 7.41% in September due to a rise in food prices.
What reasons can RBI give for missing the target?
Former BoM economist Jatin Salgavkar believes that the RBI has made an honest effort on its part, but unfortunately, inflation has not come down. Many things are responsible for this. The central bank could cite external factors such as the Russo-Ukraine war, supply concerns (which pushed up commodity prices), supply chain disruptions, and long-term conditions stemming from the COVID-19 pandemic.
What time frame will RBI give to bring inflation on target?
RBI expects inflation to fall to 4% over two years. Governor Shaktikanta Das has expressed their hope many times.
How important is the meeting for investors
Markets are uncertain these days. They are already under pressure from the US Fed rate hike. They want some clarity on the timeline. If RBI gives a deadline to bring inflation within the tolerable band, then certainly the market can get some positive hope.
After raising rates by 190 basis points since May, investors are eager to know how much more RBI can tighten monetary policy.
Is there room for an increase in rates?
Experts believe that at present, no decision related to the repo rate hike is expected in this meeting of RBI MPC. But it cannot be completely denied. There is a discussion that RBI can also increase its rates. State Bank of India's Chief Economic Adviser Soumya Kanti Ghosh has said that the meeting to be held on 3 November 2022 is only a part of a regulatory obligation.
What will be the effect of the US Fed rate hike
Markets and central banks around the world could follow the trend after the US Fed raised interest rates by 75 basis points. The growth rate of the economy slows down due to rising interest rates. This adds to the fears of a recession. Because of the decision of the US Fed, all Asian countries including Europe also start increasing their interest rates. Due to this the growth rate of those countries will also be affected.
CJI said- Shut up, leave the court right now: Said- You cannot scare us, the matter of seeking listing of the petition in the Supreme Court
Chief Justice of India Justice DY Chandrachud got angry over the listing of an application in the court on Thursday. He told senior advocate Vikas Singh in a loud voice, 'Shut up. Leave the court
Lucknow murder case: After the murders, the father was dropped at the station, knowing what happened in the hotel room in two days
Arshad, a resident of Islam Nagar, Tehri Bagiya, Kuberpur, Agra, along with his father Badar, killed his four sisters and mother in Hotel Sharanjit, located in Naka. All had come to Lucknow from Ajmer
KKR vs RR: Butler, who came in as an impact player, left an impact, and scored his second century, Narine's hard work went in vain.
Rajasthan Royals won the 31st match of IPL 2024 on the last ball. Jos Buttler gave the team its sixth win with a century. Rajasthan continues to top the points table with 12 points while Kolkata
Sikandar: Muslim activists demanded a boycott of 'Sikandar', and director AR Murugadoss became the reason for this!
Salman Khan's 'Sikandar' released on March 30, which received mostly negative reactions from critics and audiences. The film's earnings have also declined. However, now the film seems to be stuck in
PBKS vs SRH: The game changed every moment, with high-voltage drama in the last over, Hyderabad won, but Ashutosh Sharma won hearts.
PBKS vs SRH IPL 2024: Chasing the target of 183 runs, the Punjab Kings team could score only 154 runs after losing 6 wickets in 19 overs. Punjab needed 29 runs to win in the last over. Everyone was
'Congress has the right to protest, but not to loot land and money'; BJP's big attack on Congress.
BJP MP Ravi Shankar Prasad addressed a press conference on Congress' announcement of protests outside ED offices across the country in the National Herald case.
India said, WHO reached the conclusion in a hurry: The cough syrup made in India was called fatal; The government bid – the quality was right
The government has responded to the World Health Organization (WHO) matter of calling cough syrup made in India fatal. The drug controller wrote a letter to WHO, saying in it – You showed haste
Delhi Traffic Advisory: Heavy rain in Delhi overnight, read the advisory before going to the office; avoid these routes
Due to heavy rains in the capital Delhi on Wednesday evening, the roads were submerged and there was a long traffic jam on the roads. Water filled in the underpasses at many places. Due to this, the
AP SSC 2023 Exam: Andhra Pradesh 10th board exam starts tomorrow, these guidelines have to be followed
Andhra Pradesh Board of Secondary Education's 10th examination is starting tomorrow i.e. 3rd April. The admit card for the exam has been issued. Registered students can download their AP SSC 2023 Hall
Corona threat in the country and the world: Line of vehicles outside crematoriums in China seen in a satellite image, more than 1 lakh cases were found in Japan in 24 hours
With the increase in corona cases in China, the danger of spreading the infection is also looming in countries like India, Japan, Britain, and America. Meanwhile, a satellite image has come to the
