New Delhi: RBI hiked the repo rate by 0.50 per cent to 5.9 in its monetary policy announcement on September 30.The Reserve Bank of India (RBI) will hold a special meeting of the Monetary Policy Committee (MPC) today to prepare a report on the failure to control retail inflation. Inflation out of control: Special meeting of RBI Monetary Policy Committee today.
The RBI MPC will hold a special meeting amid rising prices of essential commodities and retail inflation. The RBI has failed to keep retail inflation below 6 percent for three consecutive quarters. Therefore, a report related to his failure has to be prepared.
An additional meeting of the Monetary Policy Committee will be held under Section 45 ZN of the Reserve Bank of India Act. Retail inflation, which has been on the rise for 9 consecutive months, rose to 7.4 percent in September.
RBI has also taken many measures to prevent rising inflation.
One of them was increasing the repo rate four times in a row.RBI hiked the repo rate by 0.50 per cent to 5.9 in its monetary policy announcement on September 30. Along with this, the RBI has increased the repo rate by a total of 190 basis points since May.
Despite all these measures inflation has not come under control. Therefore, RBI has to submit a report to the government. In addition, the details of what steps will be taken to control inflation should also be given.
As per Section ’45 ZN’ of the Reserve Bank of India Act, RBI has to inform the Center of the reasons if it is unable to keep inflation within the limits for three consecutive quarters.