Question
Consider the following statements with reference to the
Monetary Policy Committee (MPC): I. It is Constituted by RBI under the Reserve Bank of India (RBI) Act, 1934. II. It is Chaired by the Governor of RBI. III. MPC conducts meetings at least 3 times a year. Which of the following statements is/are not correct?Solution
Reserve Bank of India said that it will call a special meeting of its Monetary Policy Committee (MPC) soon explaining the reasons for the average retail inflation remaining above the upper tolerance limit of 6% for three consecutive quarters. Constituted by RBI under section 45ZB of the Reserve Bank of India (RBI) Act, 1934. Chaired by the Governor of RBI. Mission: Fixing the benchmark policy interest rate (repo rate) to restrain inflation within the particular target level (2% to 6%). MPC conducts meetings at least 4 times a year. The monetary policy is published after every meeting with each member explaining his opinions.
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