The Reserve Bank of India (RBI) on Tuesday announced that the Monetary Policy Committee (MPC) meeting will be held from October 7 to 9 as it was earlier scheduled for September 29 but got postponed because the government delayed in choosing three external members. After this, as the sources declare, the central bank will also announce the outcome of its bi-monthly policy rates on October 9. The announcement by the Central bank comes after the government filled the vacancies of three external members in the committee on Monday. The government on Monday appointed Ashima Goyal, Jayanth R. Varma and Shashanka Bhide as members of the Monetary Policy Committee of the RBI.
MPC has assigned the role of watchful with respect to inflation dynamics to further use space available on the monetary side when appropriate. The RBI Governor will also announce stimulus measures, which included additional liquidity of Rs 10,000 crore at repo rate to NABARD and NHB. It is to be believed that RBI’s move will definitely aid the reeling sector to tide over the liquidity crisis. The enhanced finance flow should see developers in need of last-mile funding being able to complete their stalled projects,” said Niranjan Hiranandani, President – Assocham and Naredco.
The MPC has given the directives by the government to maintain annual inflation at 4 percent with an upper tolerance of 6 percent and a lower tolerance of 2 percent until March 31, 2021, with the beginning of the new commercial year. As per the sources the Appointments Committee of the Cabinet (ACC), headed by the prime minister and he himself approved the names.
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