The Reserve Bank of India (RBI) on Thursday announced that the Monetary Policy Committee meeting scheduled for 5-6 June will start from 4 June and finish on 6 June, extending the stretch for three days for the first time. “Owing to certain administrative exigencies, the second bi-monthly Monetary Policy meeting for 2018-19 will now be held on June 4-6, 2018 instead of on June 5-6,” the Reserve Bank of India said in a statement. The six-member Monetary Policy Committee chaired by RBI governor Urijit Patel will meet on 4, 5 and 6 June 2018, respectively.
RBI has mentioned ‘certain administrative exigencies’ as the sole reason for the extension in FY19’s second MPC meeting term. Following the declaration by the central bank, investors and market participants will likely watching the outcome more closely due to the unusual move by the Reserve Bank of India. “There is no change in the dates of all other MPC meetings for the year 2018-19,” RBI said further.
Earlier in April this year, in the first bi-monthly Monetary Policy meeting, the Reserve Bank of India kept the key repo rate unchanged at 6% with reverse repo rate at 5.75% and the bank rate at 6.25%, respectively. Dr Chetan Ghate, Dr Pami Dua, Dr Ravindra H. Dholakia, Dr Viral V. Acharya and Dr Urjit R. Patel voted in favour of the monetary policy decision. Dr Michael Debabrata Patra voted for an increase in the policy rate of 25 basis points.
In the financial year 2018-2019, the Reserve Bank of India is scheduled to hold MPC meetings on 31 July-1 August 2018, 3-4 October 2018, 4-5 December 2018 and 5-6 February 2019.