The Reserve Bank on Thursday called a special meeting of the Monetary Policy Committee (MPC) on November 3 to prepare a report on its failure to keep retail inflation below 6 per cent for three consecutive quarters.
Inflation has remained above the upper tolerance limit of 6 per cent for nine consecutive months or three quarters.
“Under the provisions of Section 45ZN of the Reserve Bank of India (RBI) Act …an additional meeting of the MPC is being scheduled on November 3, 2022,” the central bank said in a statement on Thursday.
Section 45ZN of the Act deals with failure to maintain the inflation target.
Earlier, RBI in another report said that the fight against inflation will be dogged and prolonged as the monetary policy operates with long and variable lags.
The consumer price-based index (CPI), or retail inflation, accelerated to 7.4 per cent in September from 7 per cent in August. CPI has been above the Reserve Bank’s tolerance band of 2-6 per cent since January 2022, resulting in a 190 basis points (bps) increase in repo rate since May this year.