RBI Publishes FY27 MPC Schedule; April Meeting To Decide First Rate Move

The Reserve Bank of India (RBI) announced its schedule for the upcoming Monetary Policy Committee (MPC) meeting for the upcoming fiscal year. As per the announcement, the first MPC meeting of the upcoming fiscal year is to be held in April, and the rate decision is to be announced on April 8, marking the end of the meeting. This is in line with the general practice, where discussions are to be carried out over three days, followed by an announcement of the rate decision on the third day of the meeting.

RBI MPC is to hold a total of six meetings during the upcoming fiscal year, with a gap of two months between successive meetings. The second meeting is to be held between June 3 and 5, followed by successive meetings in August, October, December, and February.

Each meeting is to be conducted over a period of three days, and a decision is to be made on the basis of inflation and other economic indicators.

Structure And Decision Process Of MPC

MPC determines the repo rate, which in turn impacts the rates at which borrowings are undertaken in the economy. The panel comprises six members, out of which three are from the RBI, and the rest are external. These external members are appointed by the central government.

All the members are required to vote on the matter. The final decision comes from the majority. The Governor of the RBI announces the results once all the voting is done on the last day.

The repo rate set by the MPC directly impacts the loans and deposits made in the economy.

Inflation Target Framework Up For Review

While making decisions, MPC also takes into consideration the retail inflation and the overall economy. The primary goal for the MPC is to keep inflation within a predetermined range.

The framework for inflation targeting was first introduced in August 2016 for a period of five years. It was extended for another five years in March 2021. The current term for the framework is to end in March 2026.

Now, as the period is set to end, the government may review the framework once again before the end of March 2026. In the latest meeting held in February, the MPC decided to keep the repo rate at the same level of 5.25 per cent.