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Need to address growth challenges: RBI Governor
Why is it in the news?
- As per the minutes of the Monetary Policy Committee(MPC) meeting, four out of six MPC members had voted for a reduction in interest rate from 6.25% to 6% at the meeting of the MPC earlier this month.
More in the news
More from the Minutes:
- Reserve Bank of India (RBI) Governor highlighted the need to address growth challenges as the inflation outlook remained benign.
- The RBI Governor also flagged the idea of departing from the conventional rate revision in multiples of 25 bps.
- Deputy Governor Viral Acharya had voted for status quo for the second consecutive occasion, and highlighted the risks of stubborn core inflation.
- Observing that February had already shown some seasonal uptick in prices of several food items, Dr. Acharya argued that soft food inflation may not persist for long.
Monetary Policy Committee:
- The Monetary Policy Committee (MPC) is a committee of the Central Bank in India (Reserve Bank of India), headed by its Governor.
- MPC is entrusted with the task of fixing the benchmark policy interest rate (repo rate) to contain inflation within the specified target level.
- The MPC replaces the previous arrangement of Technical Advisory Committee.
- The Monetary Policy Committee (MPC) is formed under the RBI with six members. Three of the members are from the RBI while the other three members are appointed by the government.
- Members from the RBI are the Governor who is the chairman of the MPC, a Deputy Governor and one officer of the RBI.
- The government members are appointed by the Centre on the recommendations of a search-cum-selection committee which is to be headed by the Cabinet Secretary.
Source
The Hindu.