The Reserve Bank of India (RBI) on Monday said that a meeting of monetary policy committee (MPC) for this week has been rescheduled. The central bank also said that the new dates will be announced shortly. The central bank, however, did not give any reason for rescheduling the meet.
"The meeting of the MPC during September 29, 30 and October 1, 2020 as announced is being rescheduled. The dates of the MPC's meeting will be announced shortly," the RBI said in a statement.
The interest-setting panel was scheduled to meet for three-days beginning Tuesday for RBI's bi-monthly monetary policy review.
In its last MPC meeting in August, RBI kept policy rates unchanged to help tame inflation that in recent times had surged past 6 per cent mark, and said the economy is in an extremely weak condition following the coronavirus pandemic.
The RBI has cut policy rates by 115 basis points since February. The next MPC meet holds significance amid the current level of inflation and prevailing uncertainty over the growth outlook. The government has mandated RBI to keep inflation at 4 per cent (+/- 2 per cent).
The RBI is also awaiting the government's decision on new external members to the committee. As per the RBI Act, external members of MPC have a tenure of four years.
Meanwhile, the industry body Confederation of Indian Industry recently said: "The RBI should maintain its accommodative stance, while avoiding a rate cut for now given the stickiness in CPI inflation. While supporting growth is critical, the RBI could wait till there is some visible moderation in inflation."
The central bank should continue in a more pronounced way the accommodative stance on the policy interest rates in the wake of serious challenges due to contraction in the economy induced by the COVID-19 pandemic, Assocham Secretary General Deepak Sood had earlier said.