Monetary Policy Review

About:

• It raised the repo rate (or the rate at which it lends money to the banking system) by 50 basis points (or 0.5 percentage points). 
• It has cut India’s GDP growth rate for the current financial year (2022-23) from 7.2% to 7%.
• The MPC retained the retail inflation projection for the current fiscal year at 6.7%.

Monetary Policy Committee

• The Monetary Policy Committee of India is responsible for fixing the policy interest rate, to achieve the objectives of monetary policy.
• Composition:
• Three officials of the Reserve Bank of India, with Governor of RBI as Chairperson, ex officio
• Three external members appointed by the Government of India
• The external members hold office for a period of four years.
• Decisions of the MPC are taken on the basis of majority, with Governor having the casting vote in case of a tie.
• The MPC meets least 4 times a year and it publishes its decisions after each such meeting.

Source : The Hindu