RBI's reconstituted MPC to hold maiden meeting; rate status quo expected for 10th time

The reconstituted Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) is set to begin its first meeting on Monday, with the outcome to be announced by RBI Governor Shaktikanta Das on Wednesday, October 9. Despite the inclusion of three newly appointed external members, it is widely anticipated that the MPC will maintain the current interest rate. This would mark the tenth consecutive time that the RBI has kept the policy rate unchanged since its last revision in February 2023, when it was raised to 6.5%.

Alongside Chairman Das, the internal members of the MPC include Deputy Governor Michael Debabrata Patra, who oversees monetary policy, and Executive Director Rajiv Ranjan, head of the RBI’s monetary policy department. The government recently appointed three new external members: Ram Singh, Saugata Bhattacharya, and Nagesh Kumar. Singh, the director of the Delhi School of Economics, brings extensive academic experience, including a PhD from Jawaharlal Nehru University and post-doctorate work from Harvard University.

Bhattacharya, a senior fellow at the Centre for Policy Research, has over three decades of experience in economic and financial markets. Prior to this, he was the chief economist and executive vice president at Axis Bank.

Nagesh Kumar, the third appointee, currently serves as the director and chief executive of the Institute for Studies in Industrial Development. He previously held key positions at the United Nations and the Research and Information System for Developing Countries. Notably, the extended tenures of Governor Das and Deputy Governor Patra are nearing their end, with their terms set to expire in December and January, respectively.