Home / Industry / Banking /  RBI's MPC to meet 6 times next fiscal; first meeting scheduled for April 6-8

The Reserve Bank's Monetary Policy Committee (MPC) will meet six times during the next financial year. The Reserve Bank of India (RBI) Governor-headed rate setting panel will be holding its first meeting of the next fiscal from April 6-8.

The MPC announces the bi-monthly monetary policy after deliberations on the prevailing domestic and economic situations.

According to the schedule released by the RBI on Wednesday, the first bi-monthly monetary policy of 2022-23 is scheduled for April 6-8, and next will be held during June 6-8.

The third, fourth and fifth meetings have been scheduled for August 2-4, September 28-30, and December 5-7.

The sixth bi-monthly meeting of the MPC is scheduled to be held on February 6-8, 2023. Headed by the governor, the committee has two representatives from the central bank and three external members.

The MPC is expected to revise its inflation forecast next month and change its stance to neutral during either the April or June policy meet in view of the surge in global commodity prices following the Russia-Ukraine conflict.

RBI governor Shaktikanta Das has said time and again that the central bank would stick to its accommodative stance as long as necessary, but economists said the time may be ripe for the MPC to change its stance and hint at a possible rate hike. This would essentially mean the end of the easy money policy introduced in the wake of the coronavirus outbreak as a measure to support the economy.

The MPC’s inflation math has gone awry with crude oil prices breaching its comfort level of $80 a barrel. Crude oil prices have seen extreme volatility, making projections more difficult. MPC expects crude and commodity prices that are being factored into the calculations to hold for at least a year, while forecasting inflation.

In the February policy, the MPC had projected inflation for 2022-23 at 4.5%. Retail inflation as measured by the Consumer Price Index (CPI) came in above RBI’s threshold of 6% in January and February. Many economists said RBI will look at inflation as just a supply-side problem. However, others were of the view that it will consider a change in policy stance as the first step towards initiating rate hikes.

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