About MPC

• The Monetary Policy Committee (MPC) is a committee of the RBI which is entrusted with the task of fixing the benchmark policy interest rate (repo rate) to contain inflation within the specified target level.
• The 2016 amendment of the Reserve Bank of India Act, 1934 provides for a statutory and institutionalised framework for the MPC.

• The MPC has six members
  • RBI Governor (Chairperson), RBI Deputy Governor in charge of monetary policy, one official nominated by the RBI Board and remaining 3 members would represent the Government. 

• The MPC makes decisions based on majority vote. In case of a tie, the RBI governor will have a second or casting vote. 

Why in News?

• The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) has hiked the repo rate by 35 basis points (bps) to 6.25 per cent with immediate effect.
• The RBI policy rate is now at its highest level since August 2018. This is the fifth rate hike by the central bank in this financial year. 

reference:

https://indianexpress.com/article/business/economy/rbi-monetary-policy-committee-mpc-live-updates-december-2022-outcome-shaktikanta-das-key-announcements-repo-rate-hike-inflation-economic-growth-gdp-8310302/