The government has all but decided on the new external members of the Monetary Policy Committee (MPC), and the next meeting will likely be held next week, a senior official told Moneycontrol.
On September 28, the Reserve Bank of India (RBI) notified that the upcoming meeting of the MPC, scheduled to start from September 29, has been postponed.
This postponement is expected to be short one, and may have been done to complete mandatory formal processes like background and security checks of the new members, the official said.
“The meeting of the MPC during September 29, 30 and October 1, 2020, is being rescheduled. The dates of the MPC’s meeting will be announced shortly,” the RBI said.
The official, who spoke on the condition of anonymity, said the new external members may already have been informed of their appointments and their names will be announced soon.
The terms of the previous external members, Pami Dua, Chetan Ghate, and Ravindra Dholakia, are unlikely to be extended as that can only be done through legislative changes to the Reserve Bank of India Act.
In its last MPC meeting in August, the MPC kept policy rates unchanged to help tame inflation that in recent times had surged past 6 percent mark, and said the economy is in an extremely weak condition following the COVID-19 pandemic.The RBI has cut policy rates by 115 basis points since February.