RBI postpones MPC meeting as key posts remain vacant
The Reserve Bank of India (RBI) on Monday abruptly postponed a meeting of its monetary policy committee (MPC), scheduled to begin on Tuesday, puzzling a market waiting for its views on growth and inflation.
“The meeting of the Monetary Policy Committee (MPC)... is being rescheduled. The dates of the MPC’s meeting will be announced shortly,” an RBI statement said, without ascribing any reason for the postponement.
The rescheduling comes at a time the strength of the six-member MPC is down to half, after the four-year tenure of its three external members ended in August. “Till Sunday, RBI was expecting an announcement from the government and was scheduled to hold the MPC meeting as planned,” an official said.
There were expectations the meeting would offer inflation and growth projections for the first time since February, revealing RBI’s view of the extent of the current slowdown. “Such a postponement doesn’t send a good signal to the market,” said A Prasanna, chief economist, ICICI Securities Primary Dealership, adding that it would have been a good occasion for RBI to give clarity on liquidity and open market operations.