Reserve Bank of India

27.06.2016

Banking

Constitution of Monetary Policy Committee under way

MANU/PIBU/0508/2016

The Central government brought in force provisions enabling constitution of the Monetary Policy Committee on 27 June 2016.

The Rules govern the selection, appointment and terms of service of members of the Committee. Three of its six members will be from the Reserve Bank of India and the remaining will be chosen for their expertise in economics, banking and monetary policy.

The Committee, envisaged in Finance Act 2016, is seen as the means to maintain price stability, while balancing sufficient growth.

The central government also notified factors constituting failure to achieve the inflation target under Section 45ZN of the RBI Act 1934: average inflation greater than upper tolerance level of target, or less than the lower tolerance level of target, for three consecutive quarters.

Relevant

Summary of Consultation with Technical Advisory Committee MANU/RPRL/0168/2016
MPC Members’ Rules MANU/EAFF/0105/2016
Factors for failure to achieve the inflation target MANU/EAFF/0106/2016

Rainfall, agricultural growth, food production and inflation. Financial Stability Report June 2016

Tags : monetary policy committee members rbi inflation

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