MPC members agree for rate cut

 All the members of the monetary policy committee (MPC) agreed to a rate cut, apart from supporting the fact that inflation is likely to soften going forward.

The MPC, which has recently appointed by the government, has three members from the RBI and three government nominees.

While the three government nominees on MPC are Chetan Ghate, Professor, Indian Statistical Institute; Pami Dua, Director, Delhi School of Economics; and Ravindra H Dholakia, Professor, Indian Institute of Management-Ahmedabad, the RBI members are Executive Director Michael Debabrata Patra, deputy governor in charge of monetary policy, R Gandhi, and was chaired Urjit R Patel, RBI Governor.

The meeting of the MPC was held on October 3 and 4. The MPC announced a 25 basis points rate cut after its meeting on October 4, following which the repo rate was reduced to 6.25%, from 6.5%. As per the MPC minutes, RBI governor Urjit Patel believed that policy action is warranted due to the fall in inflation.