27-10-2021 | 15:47 PM
RBI Monetary Policy Committee
• The Monetary Policy Committee (MPC) of the RBI kept the repo rate unchanged at 4 percent, in order to revive & sustain growth.
Key points:
• The Monetary Policy Committee has also ensured that inflation remains within the target. Reverse repo rate was also kept as earlier at 3.35 per cent.
• Marginal Standing Facility (MSF) rate and bank rate also remain unchanged at 4.25 per cent.
• For the financial year 2021-22, CPI inflation is projected at 5.3 per cent.
• As per RBI, food inflation is predicted to remain muted in upcoming months, as a result of record production of food-grains.
About Monetary Policy Committee (MPC):
• The RBI has a government-constituted Monetary Policy Committee (MPC) which is tasked with framing monetary policy using tools like the repo rate, reverse repo rate, bank rate, cash reserve ratio (CRR).
• It has been instituted by the Central Government of India under Section 45ZB of the RBI Act that was amended in 1934.
• Functions: The MPC is entrusted with the responsibility of deciding the different policy rates including MSF, Repo Rate, Reverse Repo Rate, and Liquidity Adjustment Facility.
