RBI’s monetary policy committee to meet on Nov 3 over inflation

Inflation rose to 7.41 per cent in September and remained beyond RBI’s tolerance limit for the last three quarters

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The Reserve Bank of India (RBI) announced that its Monetary Policy Committee (MPC) will have an off-cycle meeting on November 3.

“Under the provisions of Section 45ZN of the Reserve Bank of India (RBI) Act 1934… an additional meeting of the MPC is being scheduled on November 3, 2022,” RBI said in a statement.

Section 45ZN of RBI Act deals with failure to maintain the inflation target.

The Monetary Policy Committee was slated to meet for the last time this calendar year on December 5 – 7, 2022.

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The MPC’s off-cycle meeting has been convened as the central bank has failed to curb inflation, which has remained beyond its tolerance limit of 2 to 6 per cent for the past nine months.

Consumer Price Index (CPI) based retail inflation rose to 7.41 per cent in September. Retail inflation has remained beyond RBI’s tolerance limit for the last three quarters.

Inflationary concerns had earlier forced the RBI’s rate setting panel to hike repo rate during a meeting held in May this year, which was also an off-cycle meeting.