MPC is a six-member committee constituted by the Central Government
Section 45ZB of the amended RBI Act, 1934
Once in every six months, the Reserve Bank is required to publish a document called the Monetary Policy Report to explain: (1) the sources of inflation and(2) the forecast of inflation for 6-18 months ahead.
The committee comprises six members – three officials of the Reserve Bank of India and three external members nominated by the Government of India.
The Governor of Reserve Bank of India is the chairperson ex officio of the committee.
REPO Rate:
REPO denotes Re Purchase Option – the rate by which RBI gives loans to other banks. In other words, it is the rate at which banks buy back the securities they keep with the RBI at a later period.
