Mumbai: India’s central bank has rescheduled its monetary policy committee meeting by a day to
Feb. 8-10, it said in a statement on Sunday, citing a public
holiday in the state of Maharashtra to mourn the death of Bollywood singer Lata Mangeshkar.
The Reserve Bank of India’s decision on key interest rates, scheduled for Wednesday, is now expected on Thursday.
The MPC meeting was scheduled for February 7-9, 2022.
With the postponement, the meeting will now begin on February 8 and the outcome would be announced on February 10.
The RBI also said there will be no transactions in government securities, foreign exchange, money markets and Rupee Interest
Rate Derivatives on Monday, Feb. 7.
Mangeshkar, one of India’s best known cultural icons and a singer who defined music for generations, died on Sunday and was
given a state funeral.
With February 7, 2022 being declared a public holiday by the Government of Maharashtra under Section 25 of the Negotiable Instruments Act, 1881 as a mark of respect to Bharat Ratna Ku. Lata Mangeshkar, the MPC meeting has been rescheduled to February 8-10, 2022,” the RBI said in a statement.
Transactions under Liquidity Adjustment Facility (LAF) Fixed rate Reverse Repo and MSF operations, for which the second leg settlement date was February 7, 2022 will now mature on the next working day i.e., February 8, 2022.
Further, the daily LAF Fixed rate Reverse Repo and MSF windows will be available as usual on February 7, 2022, the release stated.
The Reserve Bank is likely to maintain the status quo on key policy rates in its next bi-monthly economic policy, which will be the first after the presentation of the Union Budget for 2022-23.
Experts, however, are of the opinion that RBI’s MPC may change the policy stance from ‘accommodative’ to ‘neutral’ and tinker with the reverse-repo rate as part of the liquidity normalisation process.
(With Inputs from PTI/Reuters)
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