MPC to continue with 3-day format for monetary policy meet

The Reserve Bank today said it will continue with the three-day meeting format of the Monetary Policy Committee (MPC) which decides on the key interest rate.

The MPC, headed by RBI Governor Urjit Patel, used to meet for two-days, but last the meeting was stretched to three days owing to "certain administrative exigencies".

The central bank said in a statement that the MPC "has decided to continue the practice of a three-day meeting format commencing on July 30, 2018 as was adopted in the meeting for the Second Bi-monthly Monetary Policy Statement of June 6, 2018".

However, RBI did not assign reasons for changing the format to three-day meeting.

As per the earlier schedule, the MPC was to meet for two days beginning July 31.

The Third Bi-monthly Monetary Policy Statement for 2018-19 will be issued on August 1, 2018, RBI said.

The MPC was set up by amending the Reserve Bank of India Act, 1934, through the Finance Act 2016.

The first meeting of the MPC was held in October 2016. Prior to setting up of the MPC, the RBI Governor used to decide the interest rate.