Monetary Policy Committee (MPC)

MPC is constituted by the Central Government under the RBI Act, 1934 to determine the policy interest rate required to achieve the inflation target.

  • Composition: The committee comprises six members – three officials of the RBI (including RBI Governor who also chairs the MPC) and three external members nominated by the Government of India.
  • Decision Making: Decisions will be taken by majority vote with each member having a vote. The governor, however, will not enjoy a veto power to overrule the other panel members, but will have a casting vote in case of a tie.

Impact of MPC

  • While the Government of ....
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Indian Economy