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.
    • Under the flexible inflation targeting (FIT) framework, the RBI targets to contain Consumer Price Index (CPI) based inflation within 4 percent with a tolerance band of (+/-) 2 percent for the period April 1, 2021, to March 31, 2026. 
  • 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 is required to meet at least four times in a year. The quorum for the meeting is four members.

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

• Each Member of MPC writes a statement specifying the reasons for voting in favour of, or against the proposed resolution.

Why in News?

• The Reserve Bank of India-led Monetary Policy Committee has decided to keep the repurchase rate (repo rate) unchanged at 6.5 per cent for the ninth time in a row. 
• The MPC left its inflation forecast for this fiscal year (FY25) unchanged at 4.5 per cent.