In this off-cycle meeting, the Reserve Bank of India will draft a report on bringing inflation within target levels and also on reasons behind failure to achieve it. The Reserve Bank of India's monetary policy committee is held under Section 45ZN of the RBI Act amid rising inflation levels. This section focuses on failure to bring inflation within target. According to RBI, the failure to meet inflation targets is either overshooting or undershooting the upper and lower tolerance bands. In this off-cycle meeting, the Reserve Bank of India will draft a report on bringing inflation within target levels and also on reasons behind failure to achieve it.
This report will focus on the reasons behind failure to achieve inflation target, remedial actions proposed and estimated time-period of achieving inflation target. The central bank will not share the details of the report immediately.
While CPI inflation hovered around 6 per cent in the first 9 months of 2022, CPI inflation stood at 7.4 per cent in September. (Read more)
Here are live updates on the ongoing RBI MPC at Business Today.In
Speaking at the annual FIBAC conference of bankers, Das said that the RBI prevented a complete collapse of the economy by keeping policy rates lower and staying away from premature hikes. -- PTI
Markets would expect clarity regarding the time frame the central bank will be proposing to tame inflation and bring it within target levels. Investors are also closely watching how much the RBI can tighten monetary policy as the RBI has hiked policy rates by 190 bps since May.
The RBI boss said while addressing an event that the central bank is also evaluating factors like evolving inflation-growth dynamics, indicators like surveys on consumers and businesses, global macroeconomic, financial and commodity market developments and financiall stability. He added that the RBI's policy measures are based on an assessment of the overall situation.
The RBI stated supply shocks due to the Russia-Ukraine conflict in its latest Monetary Policy Report. The report stated, "War-induced price pressures as well as domestic supply shocks turned out to be stronger and more persistent than anticipated, resulting in actual inflation exceeding projections by around 100 bps each in Q1 and Q2 (of FY23)."
CPI inflation for September stands at 7.41 per cent. Shaktikanta Das said, "In early this year, when we looked at the CPI inflation trajectory, our assessment showed that the average inflation would be 4.5 per cent in 2022-23." (Read more)
"Our constant endeavour is to keep an eye on inflation, which is our primary target," Das said on inflation while addressing the FIBAC 2022 Conference. -- ANI
Rupee falls 8 paise to 82.88 against US dollar in early trade ahead of the monetary policy committee meeting. -- PTI
Today's MPC meet will explain reasons for missing the inflation targets. Besides this, it will discuss the draft letter on reasons behind failure to meet inflation target and its course of action regarding the same. The draft letter will be sent to the Centre.
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