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.
