Monetary Policy Committee (MPC)

The Monetary Policy Committee (MPC) is a six-member statutory body established by the Reserve Bank of India Act, tasked with setting India's benchmark interest rates to achieve the inflation target mandated by the government — currently CPI inflation within a 2–6% band, with 4% as the midpoint. The MPC meets six times a year (approximately every two months), deliberates on macroeconomic conditions, and votes on the policy repo rate. Three members are RBI officials (including the Governor, who has the casting vote) and three are independent external members appointed by the government. MPC meetings and their outcomes are among the most significant scheduled events in India's financial markets calendar, with interest rate decisions influencing bond yields, equity valuations, the Rupee, and bank lending rates across the economy.