RBI defers monetary panel meet
The rescheduling comes at a time the strength of the six-member MPC is down to half, after the four-year tenure of three external members ended in AugustThe new dates of the MPC’s meeting will be announced shortly, says RBI
The Reserve Bank of India (RBI) on Monday abruptly postponed a meeting of its monetary policy committee (MPC) scheduled to begin Tuesday, puzzling a market waiting for its views on growth and inflation.
“The meeting of the MPC during September 29, 30 and October 1 ...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 three external members ended in August.
“Till Sunday, RBI was expecting an announcement from government and was scheduled to hold the MPC meeting," a person aware of the matter said seeking anonymity.
While no one was anticipating a surprise, there were expectations it would offer inflation and growth projections. “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.
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