Three Economists Appointed to Monetary Policy Committee [ Current Affairs ]
Three economists Pami Dua, Chetan Ghate, and Ravindra Dholakia are appointed as the external appointees on the Monetary Policy Committee (MPC) by Appointments Committee of Cabinet (ACC) for four year term.
- Now with this, MPC has three Reserve Bank of India (RBI) representatives and three external delegates, who will mutually decide interest rates.
- Governor Urjit Patel (Chairman of MPC), and the Deputy Governor remain in-charge of monetary policy review.
- Expert on econometrics and forecasting.
- Completed her Ph.D. from the London School of Economics.
- Serving as the Director of the Delhi School of Economics (DSE).
- Research work is used in business cycle analysis, macroeconomics, econometrics, and forecasting.
- Serving as Chairperson of the Agricultural Economics Research Centre (AERC) at the University of Delhi.
- Chetan Ghate is a macroeconomist.
- Serving as professor at the Indian Statistical Institute (ISI), Delhi.
- Research on economic growth, economic development, fluctuations, and monetary and fiscal policy in developing and emerging market economies.
- Member of Technical Advisory Committee (TAC) on Monetary Policy.
- Serving as professor of Economics at the Indian Institute of Management (IIM), Ahmedabad.
- Served as an independent director on the boards of several corporations such as Gujarat State Financial Services, Union Bank of India, Air India, and Gujarat State Petroleum Corp.
About Monetary Policy Committee (MPC)
- Decides interest rates for monetary policy.
- Setup under the Reserve Bank of India Act, 1934.
- Redistributes or dilutes the power the RBI governor while deciding interest rates.
- RBI’s interest rates will now be decided based on the majority view of MPC’s six-member committee, and only in the case of a tie, the Governor will cast a vote.
- Previously interest rate was decided by RBI Governor and Technical Advisory Committee (TAC) which will be succeeded by MPC.
Specific Functions of MPC
- MPC will decide changes in the interest rates to meet the target level set under the inflation-targeting regime.
- Monetary Policy Committee will meet four times a year to make decisions.
- Published on: September 23, 2016