Why RBI's MPC is meeting for three days to decide policy rates

The Reserve Bank of India's Monetary Policy Committee (MPC) is meeting from June 4-6 to decide the key interest rates. However, for the first time since it was constituted in 2016, the MPC will conduct its deliberations over a period of three days instead of the earlier two days.

The RBI, in its press release, said, "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."

"There will be no change in the schedule of forthcoming MPC meetings, it added.


In its last policy meet, the central bank had kept the repo rate unchanged at 6% but hinted that it may change its stance based on inflation risks.

RBI executive director Michael Patra was the sole member of the six-member committee who voted for a rate hike of 25 bps.

The RBI had projected a GDP growth of 7.4% for FY19 and the inflation at 4.7-5.1% for the first half of this fiscal.

The RBI will announce the outcome of the meeting on June 6.