RBI's MPC to meet on Nov 3 to discuss first inflation target miss

The special MPC meeting is being held for the first time since the MPC was set up in 2016 because the committee failed to keep retail inflation within the 2-6% target band for 3 consecutive quarters

Reserve Bank of India's monetary policy committee (MPC) will meet on Thursday, outside its scheduled meetings, to discuss its first ever inflation target miss, which will require it to write a letter to the government.

The central bank aims to keep retail inflation within 2 percentage points on either side of its 4% target over the medium-term.

What does the RBI mandate say?

The RBI mandate requires that the central bank set out the following in a report to the government if the inflation target is not met for three consecutive quarters: the reasons for failure to achieve the inflation target; remedial actions