RBI postpones MPC meeting by a day to August 3 due to administrative exigencies

New Delhi: The Reserve Bank of India has postponed the meeting of its interest rate-setting Monetary Policy Committee by a day to August 3 due to administrative exigencies. The RBI said the decision of the MPC will be known on August 5 as against the earlier schedule of August 4. "Due to administrative exigencies, it has been decided to reschedule the MPC meeting from August 2-4, 2022 to August 3-5, 2022," RBI said in a statement on Thursday.

The MPC announces the bi-monthly monetary policy after deliberations on the prevailing domestic and economic situations. The panel, headed by RBI Governor Shaktikanta Das, has two representatives from the central bank and three external members. It is widely expected that the RBI may increase the benchmark interest rate to cool down high inflation. (Also Read: Shocking! Tanks surround crisis-hit banks in China to scare protestors: Watch)

The retail inflation print was 7.01 percent for June, higher than the RBI's upper tolerance level. The central government has tasked the RBI to ensure that inflation remains at 4 percent with a margin of 2 percent on either side. (Also Read: Massive fall in gold prices, good time to invest? Check rates in your city)

The inflation target for the period April 1, 2021, to March 31, 2026, under the RBI Act 1934 is 4 percent with an upper tolerance of 6 percent and a lower tolerance of 2 percent. To tame inflation, the RBI has raised the interest rate by 90 basis points in the last two months. The repo rate has gone up from 4 percent to 4.90 percent.