RBI Monetary Policy Committee special meeting today, report on inflation will be submitted to the government

The Monetary Policy Committee (MPC) of the Reserve Bank of India will hold a special meeting on the sidelines of its scheduled meetings on Thursday. In this special meeting, the reasons for inflation not coming under control even after four hikes in the repo rate will be discussed. Also, after this meeting, the Monetary Policy Committee will write a letter to the government informing about the reasons for not controlling inflation.

The central bank aims to keep inflation within 2-6 per cent. Talking about the medium-term general target, the standard target of RBI is 4 percent, with a scope of increase or decrease of 2 percent.

RBI's rules state that if the inflation target is not met for three consecutive quarters, the central bank submits a report to the government, detailing the reasons for the failure to achieve the inflation target, what action will be taken. And what was their impact? RBI will also have to give an estimated time frame by which it can control inflation.

The special meeting is being held for the first time since the MPC's inception in 2016, as the committee has failed to keep retail inflation within the 2-6% band for three consecutive quarters. Retail inflation has remained above 6% since January and rose to a five-month high of 7.41% in September due to a rise in food prices.

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