← 22 October 2026's Current Affairs · Economy GA Prelims ★★★☆☆ Mains ★★★☆☆
RBI's Monetary Policy Committee raises the repo rate as inflation risks build
સમાચારમાં કેમ?
Six members, a 4% target, a 2% band: the MPC rate-hike facts GS-III Prelims tests
The MPC raised the repo rate with a split vote, warning of inflation spreading beyond food and fuel.
Why it matters: general awareness
What you need to know
2 મિનિટ
The Monetary Policy Committee (MPC) of the Reserve Bank of India raised the repo rate at its October 2026 meeting, with a majority favouring calibrated tightening and two members opposing the hawkish stance.
The minutes flag widening inflationary pressures beyond food and fuel.
The MPC is a statutory six-member body under the RBI Act, 1934, and works to an inflation target of 4 per cent with a tolerance band of 2 per cent on either side.
સ્રોત: Topper IAS editorial (PIB / The Hindu / Indian Express)
મુખ્ય તથ્યો
Remember these
- MPC is a statutory six-member body under the RBI Act, 1934 (amended in 2016)
- Three members are from the RBI and three are external, appointed by the Central Government
- Inflation target is 4 per cent with a tolerance band of 2 per cent on either side (2-6 per cent)
- The Central Government notifies the inflation target in consultation with the RBI
- October 2026: MPC raised the repo rate by a split vote, citing inflation spreading beyond food and fuel
પ્રિલિમ્સ · મેઇન્સ
How the exam will ask it
પ્રિલિમ્સ
- The Monetary Policy Committee is a statutory body constituted under the Reserve Bank of India Act, 1934.
- The MPC has six members, of whom three are from the RBI and three are external members appointed by the Central Government.
- The inflation target is notified by the Central Government in consultation with the RBI, not set by the Governor alone.
- The repo rate is the rate at which the RBI lends short-term funds to commercial banks; raising it tightens monetary policy.
મેઇન્સ
GS-III (Indian Economy): The MPC raised the repo rate as inflationary pressures widen beyond food and fuel, with a split vote showing a growth-versus-price-stability trade-off. The flexible inflation targeting framework under the RBI Act, 1934 (4% with a 2% band) anchors its decisions and makes it accountable through published minutes. The way forward is calibrated tightening paired with supply-side measures on food and fuel, and clear communication to anchor inflation expectations.
Quick recall
Answer before you reveal
With reference to the Monetary Policy Committee (MPC) of the Reserve Bank of India, consider the following statements:
- It is a statutory body constituted under the Reserve Bank of India Act, 1934.
- It has six members, of whom three are from the RBI.
- The inflation target is fixed by the RBI Governor alone, without reference to the Government.
How many of the above statements are correct?
- Only one
- Only two
- Only three
- None of them
જવાબ જુઓ
જવાબ: B — The correct answer is Only two. Statements 1 and 2 are correct: the MPC is statutory under the RBI Act and has three RBI and three external members. Statement 3 is wrong because the target is notified by the Central Government in consultation with the RBI.
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