The full form of MPC is _____

Key Points

• The Monetary Policy Committee (MPC) is a committee of the Reserve Bank of India responsible for setting the policy interest rate (repo rate) to control inflation and ensure economic stability.
• The MPC was established in 2016 and consists of six members: three from the Reserve Bank of India and three external members appointed by the Government of India.
• The decisions of the MPC are aimed at achieving the inflation target set by the Government of India, which is currently 4% with a tolerance band of +/- 2%.

Additional Information

• The Monetary Policy Committee meets bi-monthly to review the economic and financial conditions, and it announces its policy decisions after each meeting.
• The MPC's decisions are guided by the objective of maintaining price stability while keeping in mind the objective of growth.
• The establishment of the MPC was a significant step towards institutionalizing the process of monetary policy formulation in India.
• The repo rate decided by the MPC influences the interest rates in the economy, affecting loans, savings, and investments.