Daily News Analysis ‘Monetary Policy Committee (MPC) ’ : 20 June

Why in News: 

• MPC maintained the policy repo rate and retained a neutral stance amid global uncertainties, inflation risks and concerns over energy prices.

MPC: Key Facts

• Full Form: Monetary Policy Committee (MPC).
• Constituted Under: Reserve Bank of India (RBI) Act, 1934 (amended in 2016).
• Purpose: Determines policy interest rates to maintain price stability while supporting economic growth.
• Inflation Target: 4% CPI (Consumer Price Index) with a tolerance band of 2%–6%.
• Composition: 6 members — RBI Governor, Deputy Governor (Monetary Policy), one RBI nominee and three Central Government nominees.
• Chairperson: RBI Governor.
• Voting: Each member has one vote; the Governor has a casting vote in case of a tie.
• Meetings: At least 4 times a year.