Expect new MPC members to be in place in time: Shaktikanta Das

Expect new MPC members to be in place in time: Shaktikanta Das



Reserve Bank Governor Shaktikanta Das on Thursday said he expects new external members of the monetary policy committee to be appointed in time. Speaking to reporters on the sidelines of the annual Fibac event here, Das said the meeting of the Monetary Policy Committee (MPC) — scheduled to take place from October 7 — can only take place when the members are in place.

“New members obviously have to be appointed then only we can hold the meeting. It should happen. We expect the new members to be in place in time,” the governor said.

The four-year term of three external members — Ashima Goyal, Jayanth Varma and Shashank Bhide — is coming to an end on October 4. The appointments to the panel are made by the government.

The MPC is chaired by the governor and has six members. The RBI has three representatives, including the governor, while the other three are external members.

The members vote on the rate call before the resolution is made public, and the governor has the casting vote in case of a tie.

The rate-setting panel has seen some dissent lately, with Goyal siding with Varma in favour of a rate cut, while the other four have consistently sided on controlling inflation, which has ensured in nine consecutive bi-monthly policy announcements where the RBI has opted for a status quo. According to the dissenting MPC members, delaying rate cuts may lead to a sacrifice in GDP growth.



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