RBI board discusses MPC, macro events

MUMBAI: The Central Board of Reserve Bank of India (RBI) on Thursday discussed the contours of setting up of the Monetary Policy Committee (MPC), a panel with the

MUMBAI: The Central Board of Reserve Bank of India (RBI) on Thursday discussed the contours of setting up of the Monetary Policy Committee (MPC), a panel with the mandate to decide benchmark interest rates, and RBI’s budget.

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The MPC is a six-member panel headed by the RBI governor. Other members include a deputy governor and an executive director from RBI, and three others nominated by the government after recommendations of a search-cum-selection committee, headed by the cabinet secretary. The panel will also include the economic affairs secretary and the RBI governor.

The MPC will meet four times a year to decide on the monetary policy by a majority vote. Each MPC member will have one vote, with the governor having an additional vote in case of a tie.

The board meeting also reviewed the macroeconomic developments, the central bank said in a statement.