InvestorQ : Why has the RBI has postponed the Monetary Policy to be announced on October 01?
Lavanya Subramanian made post

Why has the RBI has postponed the Monetary Policy to be announced on October 01?

Answer
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diksha shah answered.
4 weeks ago


There were no reasons given by the RBI has announced that the 3 day meeting of the Monetary Policy Committee shall not commence on September 29. Normally, the 3 day MPC meet culminates in the monetary policy announcement on the third day.

RBI, on Monday, announced that it had deferred the forthcoming meeting of the MPC scheduled on September 29, 30, and October 1, but no fresh date was announced for the same. Hence the monetary policy will not be presented to banks on October 01.

This is the first time in recent memory that an RBI policy has been postponed, although it had been scheduled earlier in April and June this year. The reason, apparently, is that 3 out of the 6 members of the MPC demitted office on September 22.

The three external members who completed their term on September 22 were Dr. Chetan Ghate of ISI, Prof. Ravindra Dholakia of IIMA and Dr. Pami Dua of Delhi School of Economics. RBI is yet to finalize the 3 new appointees for the MPC.

However, analysts and trades feel that the impact on market sentiments would be limited as the MPC was expected to anyways hold repo rates at 4% due to the headline CPI inflation staying 6%. The MPC had kept the monetary stance of the last policy accommodative.