New Delhi: The central bank is reviewing the impact of retail inflation in the monetary policy decision along with its impact. Reserve Bank Governor Shaktikanta Das has said that there are plans to discuss this with the concerned parties including the government. The government decided to set up a Monetary Policy Committee under the chairmanship of the RBI Governor in 2016, in an effort to keep inflation within a certain range.
The committee was entrusted with the responsibility of determining the policy rate (repo rate). The six-member Monetary Policy Committee was entrusted with the task of keeping inflation at 4 percent with a 2 percent increase.
He said, “We have begun to review the impact of the monetary policy framework internally. In the middle of the current year, around June, we will have a meeting with all analysts and experts and allied parties. The government will also be consulted in this regard. “Das said that of course RBI has to talk to the government as the framework is part of the law.
Regarding the benefits of monetary policy to the customers, the governor said that it is improving gradually and it will be better in the coming times. He said, “There has been improvement in giving monetary benefits to customers.
In December MPC, the benefit of 0.49 per cent in new loans was given to the customers while in February it has increased to 0.69 per cent. That means it has improved. “The central bank on February 6 retained the policy rate repo for the second consecutive time by the Monetary Policy Committee (MPC) at 5.15 per cent. However, he has maintained a soft stance.
In December, the policy rate was cut for five consecutive times before keeping the policy rate unchanged. Overall, it was cut by 1.35 percent. Regarding the central fiscal year of RBI as per central government, Das said that the current financial year will end in June while the next financial year will start in July and end on 31 March.
