Rajan meets Jaitley ahead of monetary policy

The government will take a call on the appointment of its nominees to the Monetary Policy Committee

Reserve Bank Governor Raghuram Rajan said on Wednesday the government would take a call on the appointment of its nominees to the Monetary Policy Committee. Rajan was in New Delhi to meet Finance Minister Arun Jaitley, ahead of the second bi-monthly monetary policy meeting on June 7.

"The government will take a call on appointment of the members in due course," Rajan said in North Block, which houses the home and finance ministries. The Monetary Policy Committee, cleared by Parliament as part of the Finance Bill-2016, will comprise six members. Three, including the RBI governor, will be from the central bank while three will be government appointees to be decided upon by a selection committee.

The Reserve Bank has reduced interest rate by 150 basis points since January 2015 to give a fillip to economic growth. But the clamour for further rate cut has not died.