New RBI MPC External Members Expected by October

 The Indian government plans to appoint new external members to the RBI’s Monetary Policy Committee (MPC) by October, Bloomberg reports.

The selection panel, which includes the RBI governor and senior government officials, aims to finalise recommendations within two weeks, with an announcement anticipated by late September or early October.

This development comes as outgoing MPC members Ashima Goyal and Jayanth R. Varma, whose terms end in October, have called for a more cautious monetary policy and a reduction in the policy repo rate.

Despite their views, most MPC members decided to maintain the repo rate at 6.50 percent, with Governor Shaktikanta Das underscoring the importance of price stability.

The MPC, led by Das and consisting of three external experts and three RBI officials, is under pressure to avoid delays like those in 2020 that led to policy uncertainty.

The current terms of Goyal, Varma, and Shashanka Bhide end on October 4.

The RBI has kept its interest rate steady for over 18 months, with expected cuts unlikely until late this year, possibly following decisions by the US Federal Reserve.