Reserve Bank’s Monetary Policy Statement
- Context: The Governor of the Reserve Bank of India (RBI), Sanjay Malhotra, has announced that the central bank’s policy interest rate will remain unchanged, continuing at the level of 5.25%.
- The Reserve Bank of India (RBI) has projected that the real Gross Domestic Product (GDP) growth for the financial year 2026-27 (FY27) will be 6.9 percent.
- The Consumer Price Index (CPI) inflation for the financial year 2026-27 has been revised upwards to 4.6 percent, from the previously projected 4.5 percent.
Current Facts
- Part III, Article 25– Freedom of conscience and free profession, practice and propagation of religion
- Part III, Article 26– Freedom to manage religious affairs
- Part V, Article 124– Establishment and constitution of Supreme Court
About the Monetary Policy Committee (MPC)-
- It is a statutory body constituted under the RBI Act of 1934.
- To determine the policy interest rate in order to maintain inflation within the prescribed target (currently 4% +/- 2%).
- Meetings: Must meet at least four times a year.
Members (Total 6)
- RBI Governor (Chairperson)
- RBI Deputy Governor
- RBI Official (One)
- Experts appointed by the Central Government (Three)
Quorum for Decision-Making
- A minimum of four members is required to constitute a quorum for decision-making.
- The Governor or the Deputy Governor must mandatorily participate in the meeting.
- Decisions are taken based on a majority vote; in the event of a tie, the Governor holds the casting vote.
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