MUMBAI, October 4 — The six-member Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) commenced its three-day bi-monthly deliberations at the central bank's headquarters in Mumbai, with the resolution statement scheduled to be unveiled on October 7, 2026.
Financial markets widely expect the rate-setting panel to maintain the benchmark policy repo rate at 6.50% while sustaining a stance focused on withdrawal of accommodation. While headline CPI inflation has shown sequential moderation supported by a healthy monsoon kharif harvest, lingering geopolitical risks, ocean freight pressures, and energy price volatility necessitate policy vigilance to permanently anchor inflation to the 4% median target.
The ongoing review also marks the formal policy participation of newly inducted external members reconstituted under Section 45ZB of the Reserve Bank of India Act, 1934. The committee will evaluate domestic growth momentum, aggregate credit growth, and systemic liquidity conditions.
Monetary transmission instruments, policy rates, and the flexible inflation targeting (FIT) framework are core themes in RBI Grade B, UPSC, and economic analyst examinations. Candidates should remember that the MPC consists of three internal members from the RBI and three external experts nominated by the Central Government, with the Governor casting the deciding vote in case of a tie.