The Governor of the Reserve Bank of India, Shaktikanta Das, will announce the policy decision of the newly built Monetary Policy Committee on Friday. The monetary policy meeting was held from October 7-9 and was delayed a week to give the government time to appoint three new external members to the panel.
The government appointed its nominees on Monday night. Ashima Goyal is currently a member of the economic advisory council of Indian Prime Minister Narendra Modi, while Shashanka Bhide is a senior adviser to the National Council for Applied Economic Research, a New Delhi-based study, and Jayanth Varma is currently a professor of finance and accounting at the Indian Institute of Management, Ahmedabad. In addition to these three new members, the committee is made up of Lieutenant Governor Michael Patra and Executive Director Mridul Saggar and Governor Shaktikanta Das.
What happened at the last meeting in August?
In the latest monetary policy, the RBI left the buyback rate and reverse buyback rate unchanged at 4 and 3.3 percent, respectively.
“The MPC also decided to continue with the accommodative stance as long as necessary to reactivate growth and mitigate the impact of COVID-19 on the economy, while ensuring that inflation remains within target in the future,” Governor Shaktikanta said. You give.
“The MPC noted that the economy is experiencing unprecedented stress in an austere global environment. Extreme uncertainty characterizes the outlook, which is highly dependent on the intensity, spread and duration of the pandemic, particularly the increased risks associated with a second wave of infections, and the discovery of the vaccine, ”said the MPC.
“Under these conditions, support for the recovery of the economy assumes primacy in the conduct of monetary policy. To achieve this goal, the stance of monetary policy remains accommodative as long as it is necessary to reactivate growth and mitigate the impact of COVID-19 on the economy. While there is room for more monetary policy actions in support of this stance, it is important to use it judiciously and opportunistically to maximize beneficial effects on underlying economic activity, ”he said.
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