Amy Kazmin à New Delhi
The Reserve Bank of India was forced to postpone its bimonthly Monetary Policy Committee meeting, which was due to start on Tuesday, after New Delhi failed to appoint replacements for three external members of the committee whose terms had expired on 6 August.
The delay leaves India’s monetary policy framework targeting inflation in limbo as it experiences massive economic contraction and inflationary pressures, due to disruptions from the battle against the coronavirus.
Prime Minister Narendra Modi’s government has given no public reason for its inability to fill vacant MPC posts, although it was well known that their four-year terms were expiring.
The RBI said it was rescheduling the meeting, but did not say when it would take place.
In 2016, India adopted a monetary policy targeting inflation, after years of fighting persistently high inflation. The MPC consists of three members of the RBI, three independent external members, with the Governor of the RBI having a casting vote.
At its last meeting in August, the MPC kept rates stable, and analysts expected rates to remain unchanged at the meeting scheduled this week.