On Wednesday, Viral Acharya, the Deputy Governor of the Reserve Bank of India (RBI) asserted that in his opinion, MSP hike’s influence on the projections is quite a challenging task.
Acharya affirmed, "Such an increase operates through multiple channels as there is a direct impact on the targeted food items. There could be impact on rural wages and then there could be generalization of all this through inflation expectations.”
In his address, he also stated that the increase in the rates of the MPC, in the months of June and August shall work only in the period of their projection.
Viral Acharya discussed various aspects relating the MPC and asserted, "It is proposed to set up an internal group to comprehensively review timings of various markets and the necessary payment infrastructure for supporting the recommended revisions to market timings.”
As pr the information provide, the next meeting of the MPC officials shall be held during the month of October, from date 3rd to 5th. There is speculation, that there would be no increase in the rates.
The Monetary Policy Committee (MPC) comprises of six members. The committee asserted that they are firm on their decision and they intend to reach the medium-term target regarding the consumer price index (CPI) inflation to about 4 percent.