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Govt failure to appoint MPC members injects more uncertainty in the economy

The Reserve Bank of India deferred its three-day interest-rate meeting due to start Tuesday, without giving any reasons or a new date for its policy decision

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This week’s rate decision was due to be announced on Thursday, with most economists predicting the RBI would keep its benchmark interest rate unchanged at 4%. Photo | Bloomberg

Anirban Nag | Bloomberg

4 min read Last Updated : Sep 29 2020 | 8:17 AM IST

India’s government injected more uncertainty into the economy this week, failing to act in time to appoint members to the central bank’s panel that decides interest rates.

The Reserve Bank of India deferred its three-day interest-rate meeting due to start Tuesday, without giving any reasons or a new date for its policy decision. The six-person Monetary Policy Committee is currently without three external members after their terms expired last month. Rules require at least four MPC members to be present at a meeting.

The government failed to make use of the ample time it had to appoint new MPC members,

Topics : Reserve Bank of India RBI monetary policy committee MPC

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