Mumbai, Apr 20 (IANS):The Reserve Bank of India's rate-setting panel will meet in June instead of April to assess the macro-economic situation. Accordingly, the first MPC meet of FY 2020-21 will take place from June 3-5.

The RBI's Monetary Policy Committee (MPC) determines the policy interest rate required to maintain growth and contain inflation in a set range.

Traditionally, RBI used to hold the first MPC meet of any financial year during April of that year.

However, the MPC meet has been postponed this year due to the extraordinary circumstances created by the Covid-19 outbreak.

The apex bank is required to organise at least four MPC meetings in a year.

In March, the MPC in an unscheduled meet reduced the repo rate, the key interest rate at which the RBI lends short term funds to commercial banks, by 75 basis points to 4.40 per cent from 5.15 per cent.

Consequently, the reverse repo rate was also reduced by 90 basis points to 4 per cent.