The Reserve Bank’s Monetary Policy Committee (MPC) held a meeting on Thursday to ‘discuss and draft the report to be sent to the Government’ by the central bank for having missed the inflation target as mandated by the MPC framework. This meeting was not part of the orginally published schedule of the MPC.
As per law, the RBI’s mandate is keep retail inflation within the 2%-6% target but inflation had exceeded the upper limit for the three quarters ended September, making it necessary for the RBI to write to the government detailing the reasons for the breach, and the roadmap it has to bring it below 6%. The contents of the letter will not be released by the RBI, it has been clarified.
The meeting was chaired by RBI Governor Shaktikanta Das and attended by all MPC members, namely, Michael Debabrata Patra, Rajiv Ranjan, Shashanka Bhide, Ashima Goyal and Jayanth R. Varma.
