| Syllabus: GS-III; Subject: Economy Topic: Monetary policies and instruments, Issue: MPC Meeting. |
Context:  RBI’s Monetary Policy Committee minutes released.
Highlights:
- RBI keeps benchmark interest rate unchanged at 6.5% citing inflationary concerns.
- Price stability essential for high growth.
- Food inflation risks remain elevated, warns RBI.
- Climate shocks pose key risk to food inflation.
- MPC member advocates reducing real interest rates to spur growth.
- GDP growth projected at 7% for 2024-25, inflation at 4.5%.
| Monetary Polict Committee :
·      Policy Repo Rate Decision: Aimed at achieving the inflation target. ·      Meeting Schedule: Six times a financial year, bi-monthly. ·      Voting System: Majority vote determines decisions, Governor holds casting vote in ties. ·      Publication of Minutes: Minutes of every meeting, including resolutions, votes, and member statements, are published. ·      Monetary Policy Report: Published biannually, provides inflation dynamics, projections, and economy assessments.
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