The New Monetary Policy Committe Forumalted By The RBI Starts Its Three Day Deliberation In A Bid To Plan Post COVID-19 Economic Recovery

The new Monetary Policy Committee constituted by the Reserve Bank of India, on Wednesday, (MPC) started its three-day deliberations after unexpectedly postponing the meet last week. The RBI had postponed the meeting of the Monetary Policy Committee (MPC) on September 28, as three new members of the committee were still not elected. The Reserve Bank announced that the rate-setting panel will meet from October 7 to 9 for the bi-monthly review of the monetary policy, within a day of the government appointing three independent members of the MPC.

The RBI has scheduled the next Monetary Policy Committee (MPC) meeting from October 7 to October 9, 2020,” the Reserve Bank mentioned in a statement. 

Three eminent economists Jayanth R Varma Ashima Goyal, and Shashanka Bhide were appointed by the Government as members of the MPC. Chetan Ghate, Pami Dua, and Ravindra Dholakia were replaced by the new members. On September 29, 2016, they were appointed on the panel for four years.

In the view of rising retail inflation driven mainly by supply-side issues, the Reserve Bank is likely to maintain the status quo and keep interest rates unchanged this time according to experts, the bankers, too have a similar opinion. RBI Governor Shaktikanta Das had earlier made it clear, even though there was headroom for additional monetary policy action, it was necessary to keep our arsenal dry and use it judiciously.

Residential sales across cities square measure step by step restorative with the imprisonment being upraised. we tend to square measure optimistic that the coming festal season can trigger the house shopping for sentiment within the market as expensive purchases square measure planned around auspicious times. only if the festal season is on, that goes to increase all the high to Dec, it’s conjointly vital that the interest rates square measure reduced drastically which is able to enthuse the house loan borrowers, Surendra Hiranandani, Chairman and administrator, House of Hiranandani. 

He intercalary that any more cut in policy rates would positively push the house consumers to fix up their shopping for selections World Health Organization were anticipating the proper chance to take a position in their dream home.  

“We are hoping that the govt. can chart out recent stimulation in terms of daring business enterprise measures for the $64000 estate sector within the close to future to outgo its growth traction. Being one amongst the foremost contributors to the economy of the country, the advantages provided to the world can have a positive impact on the growth of the state,” he said. 

The last meeting of the panel was command throughout August four to six, 2020. it absolutely was the twenty-fourth meeting of the rate-setting panel since it met for the primary time in October 2016.