what is mpc in rbi

MPC stands for Monetary Policy Committee, which is a committee constituted by the Central Government and led by the Governor of RBI. The primary objective of the MPC is to fix the benchmark policy interest rate (repo rate) to restrain inflation within a particular target level. The committee was established in 2016 to bring more transparency and accountability in fixing Indias monetary policy). The MPC conducts meetings at least four times a year, and the monetary policy is published after every meeting with each member explaining their opinions). The Reserve Banks Monetary Policy Department (MPD) assists the MPC in formulating the monetary policy, and the Financial Markets Operations Department (FMOD) operationalizes the monetary policy, mainly through day-to-day liquidity management operations).