RBI panel’s Nov 3 meet to decide on inflation letter’

Will Explain To Govt Why It Has Failed To Keep It Under 6%

Mumbai: The Reserve Bank of India’s monetary policy committee (MPC) will meet on November 3 to decide on the contents of a letter to be sent to the government following its failure to keep inflation below the tolerance band of 6% for three consecutive quarters since January 2022.

Announcing an out-of-turn meeting of the MPC, the central bank said it was called under the “provision of 45ZN of the RBI Act’’. This section pertains to steps to be taken when the RBI fails to meet the inflation target. However, with the meeting scheduled a day after the US Fed meets to possibly announce another rate hike, there are fears of MPC also taking a rate call.

The RBI has been assigned an inflation target of 4% and a tolerance band of 2% above or below this number. RBI governor Shaktikanta Das has said bringing inflation within target would be a two-year task.