Mumbai :. The Reserve Bank of India (RBI) has convened an emergency meeting of the Monetary Policy Committee (MPC) on November 3. The regular meeting of the MPC is scheduled to be held on December 5 to 7. However, the RBI’s call for an MPC meeting well before that signals a major change. It is expected that the RBI’s meeting is likely to discuss the response to the government on account of retail inflation hovering above 6 per cent.

According to the RBI, the special meeting of the MPC has been convened on November 3 as per the provisions contained in Section 45 ZN of the Reserve Bank of India Act, 1934. The previous MPC meeting was held from September 28 to 30, 2022. Accordingly, the next meeting should be held from December 5 to 7. However, a special meeting will be held a month in advance as an urgent call has been made.

In the Monetary Policy Committee meeting that concluded on September 30, the policy repo rate was increased to 50 basis points (bps). As a result, the repo rate was reduced to 5.9 percent. As a result, all kinds of loans became expensive. However, in the emergency meeting to be held, the RBI may adopt a strict policy to control inflation. As a result, the loan interest rate is expected to increase again.