The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI), chaired by Governor Shaktikanta Das, will meet on Monday to evaluate key interest rates, with discussions wrapping up on Wednesday. The committee will focus on current inflation trends, global economic challenges, and domestic growth forecasts as it reviews its monetary policy.

The RBI has held the repo rate steady at 6.5 percent for the past nine meetings, aiming to balance inflation control with economic growth. August’s consumer price inflation was reported at 3.65 percent, within the RBI’s target range, though food inflation has risen above the central bank’s medium-term goal, reaching 5.65 percent.

With ongoing increases in food and fuel prices, inflation remains a critical issue for the RBI. Despite these challenges, the central bank has adopted an accommodative approach to support India’s economic recovery post-pandemic. External influences, such as surging global crude oil prices due to tensions in West Asia and a recent 50 basis point interest rate cut by the U.S. Federal Reserve, could sway the RBI’s future decisions.

This month, the Indian government appointed three new external members to the MPC, altering its makeup. The committee now includes the RBI Governor, the Deputy Governor in charge of monetary policy, and one officer from the RBI’s Central Board, along with the new external members: Professor Ram Singh from the Delhi School of Economics, economist Saugata Bhattacharya, and Dr. Nagesh Kumar, Director and Chief Executive of the Institute for Studies in Industrial Development.