The special meeting of Reserve Bank MPC on November 3 will discuss inflation

Mumbai: A special meeting of the Reserve Bank of India's Monetary Policy Committee (MPC) has been convened on November 3, according to a list by the Reserve Bank.

The meeting is believed to have been convened to discuss a report to be submitted to the government on inflation in the country remaining above the fixed ceiling for nine consecutive months.

In its report, the RBI will have to state the reasons why it has failed to control inflation and what remedial measures it intends to take to curb the rise in prices.

If the inflation target is not achieved for three consecutive quarters, as per the RBI Act, the Reserve Bank has to submit a detailed report to the government stating the reasons for not achieving the target.

This is the first time since the formation of the MPC in 2016 that the Reserve Bank has made such a clarification. According to the responsibility assigned by the government, the Reserve Bank has to maintain the retail inflation above 2 percent and below 4 percent, but since January of the current year, the retail inflation has been continuously above 6 percent. September inflation was 7.41 percent.

The Reserve Bank has been continuously raising interest rates since May this year to curb inflation. The repo rate has been increased by 190 basis points since May till now, yet inflation has not been brought under control.