The Reserve Bank of India (RBI) will constitute a financial market consultative committee (FMCC) to deepen engagement with market participants as financial markets and infrastructure evolve rapidly, governor Sanjay Malhotra said on Wednesday.
The committee will serve as a forum for structured engagement with market participants and stakeholders on policy and operational matters related to money, government securities and foreign exchange markets, as well as their respective derivatives markets and infrastructure.
The composition and terms of reference for FMCC will be separately notified, the central bank said in a press release.
The RBI on Wednesday raised its key interest rate for the first time in nearly four years as rising inflation risks and a sharp shift in the global rate environment prompted the central bank to reverse its easing cycle. The Monetary Policy Committee (MPC) increased the key repo rate by 25 basis points to 5.50%. Nine of 10 economists surveyed by Mint had expected a rate hike, while only one called for a pause.
This has come as rising bond yields in advanced economies and an appreciating dollar are keeping global financial market sentiments nervous and fragile.