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Postponement of MPC meeting sows doubts about the RBI's credibility

The RBI was forecast to keep its benchmark rate unchanged at 4% this week, reflecting the persistence of inflation above its 2% to 6% target

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The RBI was forecast to keep its benchmark rate unchanged at 4% this week, reflecting the persistence of inflation above its 2% to 6% target.

Daniel Moss | Bloomberg

4 min read Last Updated : Sep 29 2020 | 1:15 PM IST

India's worst economic slump is no time for the government to sow doubts about the credibility of its institutions.

On Monday, the Reserve Bank of India postponed its three-day, rate-setting meeting without giving a reason. It was probably canceled because the panel didn’t have enough people to convene; the six-person committee requires four officials to proceed. The terms of three members have expired, and requests that the government extend their tenure were met with the formation of a group to select new ones instead. (By law, they can’t be appointed to second terms)

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